Wednesday, January 26, 2011

Netflix Furthers its Physical Phase-Out

 
There’s no question that Netflix wants its physical distribution business to go by the wayside, and for further proof look to its latest update: the removal of the “add to DVD queue” option from streaming devices.

This offering allowed users to add titles to their DVD queue when searching through devices like smart TVs, Blu-ray players, STBs and game consoles. 

Jamie Odell, director of product management at Netflix said the company is “doing this so we can concentrate on offering you the titles that are available to watch instantly. Further, providing the option to add a DVD to your queue from a streaming device complicates the instant watching experience and ties up resources that are better used to improve the overall streaming functionality. This change does not impact the Netflix Web site, where most members manage their DVD Queues.”

While the ‘ties up resources’ line feels a bit trite and has produced a lot of consumer ire on Netflix’ blog, Odell does make a valid point that many consumers and commentators have overlooked. Removing the option to add DVD-only from streaming devices means that these titles won’t appear on searches made directly on streaming devices, so the only content the user will see on his Netflix TV app is content that can be played directly and instantly on the TV through the app.

Couple this with the new Netflix button shipping on remotes later this year, Netflix looks poised to leave its physical business in the dust.

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