Netflix Gets Serious About Streaming Media to Replace DVDs

Netflix (NFLX), meet Hannah Montana. In the latest sign that Netflix is serious about being a streaming media leader the company on Tuesday inked deals with Disney/ABC (DIS) and CBS (CBS) to stream television shows.

CBS owns this site. Netflix has been streaming movies and television shows as it prepares for the day when folks don’t get their video content via mailed DVDs. Netflix has also done deals with Microsoft (MSFT) to distribute video on Xbox 360 and created a player by Roku to stream movies to customers who subscribe to monthly DVD rental plans.

Under the latest agreements (statement), Netflix will stream current shows from CBS and Disney–including CSI and a bunch of kids shows from the Disney Channel. If you’re going to lure the young consumers to Netflix the Disney Channel–one of the best marketing vehicles on the planet–is a must.

The shows will stream online a day after they air on television.

Comments

[JamesD:]

If I read the plans correctly, I can pay $8.99 a month and stream content 24 hours a day, all month long. Sounds like a steal. If NFLX can insert ads -- basically acting like a 100% on-demand cable channel -- they could do very, very well indeed with streaming content. Combine what the customer is watching with demographics about the customer, and it becomes a Google-type targeted advertising environment. (Rumor has it that Google makes a bit of money doing exactly this.)

2008 Sep 30 05:35 PM