In a move to pre-empt the inevitable disappearance of DVDs in the market and certainly compete against iTunes (Gallop Forum), Netflix
(Gallop Forum / NASDAQ:NFLX) today Launched its streaming service. Though no additional service fees are required, a $99.99 device connecting to high-speed internet is needed in order to bring movies into the home. With the exception of a small monthly fee with Netflix, there is no additional cost per movie that you wish to see.
A similar service exists today with the Apple TV allowing users to both rent and buy movies through iTunes. Apple TVs range from $229 to $329 with rentals from $2.99 to $3.99 and movie purchases from $9.99 to $14.99 although there is no monthly fee.
Vudu Inc also offers a similar service with it’s digital box costing $295, Rentals ranging from $0.99 to $3.99 and movie purchases ranging from $4.99 to $19.99.
Generally, the two biggest competitors are between Apple and Netflix. Apple has roughly 1000 titles compared to Netflix’s 10,000 titles available online. With that said the quality of the videos are much better using Apple than Netflix. This interesting move by Netflix is likely to draw a response from Apple. As always, Gallop will follow these evolvement and keep you informed.
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