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Netflix Considering $50 Set-top Box?
July 3, 2007

Rumors of Netflix putting out a set-top box to transfer movie downloads from the Internet to the TV have been hanging around since, well, since the company started them a little over a year ago. Today Engadget  reports that the company demoed two different prototypes for a focus group recently, according to an unnamed source who took part.  One would be priced at $50 and include component and S-video connections, the other would be priced at $100 and include HDMI connectors, presumably for high def video.

Netflix has all but said that it will introduce some type of set-top box to get video to the TV. The company hired Replay TV founder Anthony Wood as its VP of Internet TV in April and in May, CFO Barry McCarthy said the company has been working on a solution for the last two years but wouldn't discuss it's "box strategy" until later this year or next.

More interesting is the low price point Netflix is considering introducing those boxes at, if the focus group report is true. If it introduces a box, Netflix will have its share of competitors including Apple TV (soon to be priced at $400), MovieBeam, TiVo and upstarts like Vuguru, plus game console XBox 360, which also delivers movies. Netflix's box would certainly be among the cheapest, especially if the company holds steady on its subscription pricing as it has so far for its online business.

Posted by Jennifer Netherby on July 3, 2007 | Comments (2)