NEWS

Netflix Coming To PS3

Tom Ivan's picture

By Tom Ivan

October 26, 2009

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[Update: Analyst expects Netflix on Wii within 12 months]

US movie streaming service Netflix is making its way to PS3 “soon”.

Netflix expects to begin streaming via PS3 next month at no additional cost to existing subscribers who own Sony’s console.

For $8.99 a month, members can stream unlimited movies and TV episodes to their TVs and computers via Netflix ready devices. Initially, watching movies streamed from Netflix via PS3 will be enabled by a free, “instant streaming Blu-ray disc” being made available to all Netflix members.

Sony Computer Entertainment America said in a press release that the PS3’s US installed base has reached “close to nine million units”, while Netflix had 11.1 million US subscribers as of September 30.

“The PlayStation 3 system has always been about more than just gaming, and it will soon be the only platform in the industry to offer consumers such a variety of convenient options for enjoying movies and TV shows,” said SCEA president Jack Tretton. “Whether you want to watch content on Blu-ray disc and DVD, download it from the PlayStation Network’s video delivery service, or stream videos instantly from Netflix, the PS3 system is the only solution that offers it all.”

Netflix’s popularity among US-based Xbox 360 users since its launch on the console in November 2008 has led to continued speculation that the company would move to roll out the service on other platforms, with Netflix CEO Reed Hastings saying recently that “we want to be on all the game consoles”.

Following the PS3 announcement, Wedbush Securities analyst Michael Pachter said that he expects Netflix to be made available on Nintendo’s Wii within a year.

“We anticipate that a similar arrangement will be announced for the Wii in the next 12 months”, he predicted in a research note.

Pachter also went on to suggest that the Blu-ray disc required to use the service on PS3 meant that Netflix wasn’t violating the terms of its console-exclusive arrangement with Microsoft for Netflix on Xbox 360.

“PS3 owners will have to use a Blu-ray disc containing a Netflix access program in order to access “Watch Instantly” on their PS3. This compares to the service offered on the 360, which appears on the user’s Xbox Dashboard and requires no special disc for access. We believe that this intermediate step was taken in order to comply with Microsoft’s Xbox 360 exclusive arrangement with Netflix. The current deal was announced in July 2008 and implemented in November 2008, with no terms made public. We believe that the exclusive arrangement limits Netflix’s ability to appear on the dashboard for the PS3 or the Wii, but because both devices have open architecture internet browsers built-in, the solution proposed for the PS3 would likely not violate the terms of Microsoft’s exclusivity.”

Limanima's picture

This are just more bad news for Microsoft.
Things have never looked worse for Microsoft. The new PS3 Slim combined with the price cut has already turned the table for Sony side.
The increasing game library (Sony 1st/2nd party studios have been pumpnig out top quality games consistently), the increasing PSN features (for free) are slowly making the PS3 the best platform to own.
I really can't see what Microsoft can do to change this new set. Lowering the price even more doesn't seem to be the solution because at a $299 price point people don't think the PS3 is overpriced anymore.
Give me a simply reason why should someonoe pick a XBox over a PS3 when a PS3 has: Blu-Ray, built in Wi-Fi, free PSN, and finally, top quality games (on a more reliable piece of hardware).
Netflix on the PS3 is just another nail on Microsoft cofin. On Microsoft side, I have to say that they have done a wonderful job this generation and they are slowly winning market share. Next gen I think Microsoft will be even stronger. I just think they have to build a stronger 1st / 2nd party offering by acquiring more development studios.

hasan's picture

@Limanima. Irrefutable statement you made there....

zakrocz's picture

The amount of rentals I spent good money on back in the old days has burnt me far too much to start paying for the overwhelming dross the movie industry pumps out every week.

Thanks all the same MS & Sony but I'll be sticking with torrents.

NickgamertagO1's picture

I faintly remember the more vocal PS3 owners on this site downplaying the availability of Netflix on the 360 since the PS3 already as an internet browser and people have been enjoying, "Netflix and YouTube..." on it for a long time free of charge of course. Is this then not really news at all for PS3 owners? Now they have to put a disc in instead of just using their browser? Very odd.

Mystakill's picture

What's to downplay? Netflix (and Hulu, Youtube, ESPN, CBS, etc.) streaming was available on both the 360, PS3, and other UpNP/DLNA devices prior to NXE with the right software (PlayOn Server) running on your computer to transcode on-the-fly.

Building it in to the dashboard/XMB or putting on a disc just makes it easier & cuts out the transcoding and extra network congestion. PlayOn's still more versatile though, since both consoles will still only have native Netflix streaming for the foreseeable future.

WazWii's picture

It is news for the more casual users. They have a great choice now; Blu-Ray Movies for their favorite movies and franchises (if they are collectors say) and the ability to stream the vast catalogue of Netflix Movies/TV Shows for casual one off time viewing. If they prefer to totally download and own their copies they have the PlayStation Video Store. Either way the PS3 is the only device out there to offer all three in the USA. No one else can claim that. The PS3 is pretty close to the ultimate movie experience system you can get; with its quite operation and strong reliability. It supports all the advanced sound codes, has BD Live, HDMI 1.3 and does a fantastic job of up-scaling DVD's. Further, I would not doubt if it will also be able to one day do 3D movies...

I would how Sony will advertise this? Will it go into their 'It Only Does Everything Campaign'?

DubsTF's picture

I faintly remember the more vocal PS3 owners on this site downplaying the availability of Netflix on the 360

Not me! Since finishing Shadow Complex a couple months ago, Netflix has been the only reason I even turn on my 360 anymore.

I made a joke in a comment last week about letting my Live subscription lapse. This news has me seriously considering it.

OmegaVader's picture

As a 360 owner, this is awesome. Keep MS on their toes. So much for raising the Live price, for example.

ArronC07's picture

This along with the fact that you can get Facebook and Twitter for free on the PS3 makes the coming price rise for XBOX LIVE seem even more like an own goal for MS.

hasan's picture

could not agree more arronc07...

Chotus's picture

Well hopefully MS won't be raising the price anytime soon. I believe they denied that rumor.

However I am happy to hear about Netflix on PS3. I wish it didn't need to use that disc, but it's still not too bad a deal.

I like Xbox live a lot more than PS3 online. Just more robust.....at least currently. Sony is improving it at a pretty good rate. The good thing is that everything is free. Can't really argue with that. Even though I prefer Xbox live, it pisses me off that you have to be a Gold member to use Netflix, even though you pay for that service.

Oh well that is the beauty of having all 3 consoles. What you don't like on one, just use the other.

samromeo's picture

'i'I believe they denied that rumor'

As i remeber they said that there wouldnt be one soon, which pretty much confirms one in the future... as if i dont pay enough already, ill be cancelling mine by next month, crappy M$.

grognard66's picture

Netflix on 360 has been great and it's good that PS3-only owners get to enjoy this too. Hopefully, it will work as smoothly on PSN as on Live!. Strange that it requires a disc though.

The problem for Sony is one of perception - they EVENTUALLY offer things that 360 does, but only after a year or two. When trying to sell your product as a premium offering you should be leading - not following slowly. This can also be seen as tacit admission by Sony that Blu-Ray is not the option most consumers want - downloads are the preference and the future for media.

WazWii's picture

Sony are giving consumers choice. Blu-Ray will be around for many years as the traditional medium of discs will not go away for a while. Some prefer discs, some prefer digital distribution. The PS3 gives them that choice now. And by the way; who said Sony did not want Netflix some two years ago? They possibly might have wanted it then but were simply locked out (cough cough) by Microsoft's cash and the their so-called exclusive arrangements. It it excellent news that Netflix has decided to embrace an excellent all-round movie device. A match made in heaven.

Digital-Hero's picture

"The problem for Sony is one of perception - they EVENTUALLY offer things that 360 does, but only after a year or two. When trying to sell your product as a premium offering you should be leading - not following slowly."

Maybe for the well-informed. Netflix on PS3 is still one less reason to get a 360 for those who are on the fence. At $299, PS3 offers more features (Built-in Wifi, Blu-ray, and free online gaming). Let's not mention the growing library of exclusives you won't be able to find on PC down the road.

So in that regard they are a leader. Sony has made a dramatic turn for the better since 2008 but it looks like you are still living in 2007.

grognard66's picture

You're conveniently ignoring the 360 exclusives that don't go to PC (Halo 3 and ODST, Gears 2, Fable 2, for example) and the fact that many console owners do not have a PC capable of running games that later get ported to PC.

Sony is gradually making strides both in terms of features and game library, but it started so far behind that it will never catch up this generation in either regard. Additionally, there is no way for Sony to go back and incorporate these newer features into old games so it will never truly catch up (there are many games without rumble, voicechat, trophies, etc. whereas 360 mandated all of those things from day one). The lesson to be learned is to make sure you establish the ground rules BEFORE launch (and leave a method to incorporate later features into previously released games) rather than making it up as you go along.

No question, PS3 now offers a far better value proposition than it did before the price drop, but it is far too late this generation to change the dynamics - it just keeps PS3 in the game.

WazWii's picture

No one cares about the past; they are looking to the future games. Sony is not making strides; this has all been part of their ten-year lifecycle. They are just nice and quietly going through these plans. There is no lesson to be learned that you seem to be implying. Netflix keeps the PS3 in the game? How did you figure that one out? LOL

And when you talk about catching up this generation who are you actually referring to?

Alex Walker's picture

It can be seen that way, if you want to see it that way. Until you realise that Netflix is a rental service.

So are we saying that the option most consumers want is rental, and not buying?

grognard66's picture

Absolutely. Most consumers rent (or in this case stream) far more movies than they buy.

Also, both PSN and Live! already have the option to buy movies to download. With the new Zune marketplace on Live! you can even buy downloadable movies/tv shows/music videos and share them at no additional cost with your pc and/or Zune player - allaying the concern some people have about what happens to your purchases when the next generation of consoles comes out and increasing portability of purchases.

Peter_Pesic's picture

I personally am more in the rental camp, and I've used the Live service quite a bit. I guess I'm in the minority, since I can usually start watching the rental within 10-15 mins of starting the download. And I'll probably use the PS3 service (if/when it becomes available in Canada) as long as the price is equivalent. It's way more convenient to "rent" a movie digitally than physically from Blockbuster.

I wish Netflix had their online streaming service available in Canada, I'd be a subscriber from day one. It's perfect for just wanting to watch something on a boring night/day. I definitely still purchase Blu-rays and DVDs, but there are a ton of movies that are worth watching once, but are not worth purchasing outright.

Alex Walker's picture

I'm not so sure that DVD sales would bear that out.

Personal experience, I know of one person who uses the rental option on the 360, and thats not often due to the at limes obscene length of time it takes for the film to be ready. I know plenty of people who pick up DVD's from Asda though.

Rob's picture

The download times are what have really deterred me from using these services on either my PS3 or 360. It makes impulse purchases impossible. I don't like having to plan 3-5 hours ahead on what I'm going to rent. Although I do hate Blockbuster.

DCrappa's picture

On my AppleTV I can rent a movie and start watching about 5 seconds after the purchase in SD. If its HD then I will need to wait about a minute.
What's with Xbox and PS3 networks taking so long? I can only assume thats the cause as my internet is certainly nothing special. I've never tried to rent anything on my 360 so can't compare.

Mooks's picture

I rent movies on 360 and am pleased to see that it's coming to PS3 too. I think this could have a bearing on the PS3/360 competition, especially as they become closer in price, because the Xbox Live doesn't have a lot to justify it's online fees compared to PSNs free access after this. Although it's probably late enough in the cycle not to bother Microsoft too much, will be interesting to see what happens with Live subscription fees in the next gen though because, if the PS4? is close in price to the 720?, then the online fees could be important deal breaker for such similar services.

Incidentally, I never have long to wait for the movies so maybe the above users have some issue they don't know about. Also you guys do know you can start playing before it's fully downloaded, once it's essentially buffered don't you? It isn't as fast as AppleTV sounds but a few mins wait for SD and maybe 10-20 mins max for HD isn't extreme - certainly not 3-5 hours!