Netflix available through TiVo

The deal announced in November has now become reality.  TiVo has just release software to users that will allow them to download 300 titles from Netflix.  Mac users already have this feature.  Netflix developed it own service Roku to stream movies to customers.

In my previous post about Netflix, I wondered if they weren’t “just a middleman that is easily circumvented?”  I feel that even more strongly now.  Netflix is going from an end to end service to a plug-in.  I don’t think its brand is strong enough to get swallowed up by the companies providing the service that Netflix plugs-in to.

Netflix: No More Used DVDs for Sale

The way of floppy discs?

Selling them to wholesalers?  Increasingly the company is moving away from dvds having made deals to stream with Tivo and Samsung recently as well as LG Electronics and Roku.  See press release here.

It will be interesting to see how this pans out for Netflix.  They have no choice but to move in this direction but what made them successful was quick rentals without late charges through the mail.  They had an idea and a distribution efficiency that put them ahead.  Now what do they have?  An extensive library and a good website as well as branding and a customer list but if as the technology improves, well that be enough?  Aren’t they just a middleman that is easily circumvented?