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July 25, 2005

Netflix Video On Demand service inches closer

movies — by TDavid @ 11:24 am PST

In April 2004 we blogged that CNN Money was reporting that at some point in 2005 Netflix would be entering the Video On Demand (VOD) business. Well, that time appears to be much closer now as a few customers spotted pieces of the upcoming download area at Netflix and blogged about it. The Mercury News went to the horses mouth for an explanation and update:

“We have said we’re committed to testing a product this year and we expect the test to be of a very modest nature,” said Netflix spokesman Ken Ross, who declined to discuss the timing of the launch or the nature of the service. A pair of software glitches on the Netflix site apparently displayed references to the download service.

In September 2004, the rumour was that Netflix would have some sort of joint venture with TiVO which the article above continues to perpetuate.

TiVO badly needs some kind of partnership as it’s stock price is going south quickly with the announcement that DirecTV, where it gets some 70% of its business, is going to be releasing its own PVR service, possibly as early as August or September of this year.

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