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Owoeye Heatley

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Aug 2, 2024, 12:50:13 AM8/2/24
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Thanks to the folks at Microsoft and Netflix, I've gotten the new Xbox 360 console upgrade and have started watching Netflix movies on my Xbox this morning. A couple gaming sites have been doing some reviews as well and have raised a bunch of questions, some of which I have already asked Microsoft and Netflix and will update this post if I get answers.

The new Xbox 360 console update, which will be release to the public on November 19th, includes the highly anticipated ability to stream Netflix content to the Xbox 360 console as long as you are a Microsoft Live Gold customer and a Netflix customer.

After downloading the new console update and then downloading a small Netflix update, you active the streaming functionality by entering a code from your Xbox 360 into your Netflix account via the computer. From there, you can add Netflix videos into your watch now queue and they instantly show up on your Xbox 360. Navigating through your movies is done by going to the Netlfix box in the "Video Marketplace" channel which takes you to an app that allows you to very cleanly and very quickly flip through the movies in your queue. The movies are represented by cover artwork of each movie and even when you have a hundred or so titles in the queue, the app is super fast. I would compare the experience to being almost identical to flipping through albums in iTunes using Cover Flow. The only major downside here is that movies still have be added via the computer first, before they can be played back on the Xbox 360.

Once you select a movie, you get a screen with details about the video and the ability to rate the content as well as the ability to start, resume or remove the video. When you select play, the app checks your connection speed and buffers the video. For me, the videos buffered very fast and I never waited more than about ten seconds for any video to start. That may not be the startup time for the average consumer though as I am on a 20MB FiOS connection. While most movies are in SD, Netflix has to date made about 300 videos available in HD, many of which are TV series and not actual movies. Watching the SD movies on a 50" plasma screen looked amazing and HD is really incredible. The quality of the stream is all based on your connection speed and I am waiting on Netflix to hopefully give me details on the encoding bitrates being used. But the bottom line, the video quality is really, really good and in my eyes, is DVD quality with no frame rate issues.

Netflix and Microsoft have clearly thought about the experience, the ease of use and the quality of the videos being delivered and overall, I expect users will be very happy. That being said, this hands on review leaves me with three main questions that will dictate how successful the offering will be.

For starters, what is the business relationship and model behind the new service? With three parties involved, Microsoft, Netflix and content owners, whom is paying whom to make all this happen and how will money be made? I know this is a new service to start and hence, a clear business model has not yet been established. But over time, one will have to emerge.

Second, does the availability of getting movies on the Xbox 360 now mean that more content owners and in particular, major movie studios, will start giving Netflix the rights to encode and deliver more first-run movies? Hopefully so, but they still control the content and have a big say in the success that the Netflix service will have.

Netflix on Xbox 360 is an important component of the new Xbox experience, a new generation of games and entertainment experiences that will be available on Xbox 360 consoles this fall. The new Xbox experience, also announced today at the E3 Media and Business Summit, represents the first time in history that a mass-market consumer electronics device has been re-invented through free software, giving people more fun and intuitive ways to interact, play and enjoy entertainment content.

From the Netflix Web site, members simply add movies and TV episodes to their individual instant Queues. Those choices will be automatically displayed on the TV screen via Xbox 360 and available to watch instantly. Once selected, movies will begin playing in as little as 30 seconds. In addition to instantly streaming movies to the TV, Xbox LIVE Gold members can fast-forward, pause and rewind, all using either their Xbox 360 Controller or Media Remote. In all, the user interface creates a highly personalized experience that puts viewers in control.

The library of movies and TV episodes that will be available for instant streaming from Netflix via Xbox 360 includes scores of Academy Award winners and nominees, episodes from a number of popular, currently running and classic TV shows, and 24 of the movies rated by the American Film Institute as the greatest ever.

Today, Xbox LIVE members can also download movies and purchase TV shows from the industry-leading Xbox LIVE Marketplace Video Store, currently packed with content from more than 45 networks and studios. The Xbox LIVE Marketplace Video Store offers more than twice the high-definition content than the nearest cable provider and more than 6,000 hours of TV shows and movies.

Xbox 360 is a superior video game and entertainment system delivering the best games, unique entertainment features and a unified online gaming network that revolve around gamers. Xbox 360 has a portfolio of nearly 400 games in 37 countries. More information can be found online at

Xbox LIVE is the first and most comprehensive unified online entertainment network seamlessly integrated throughout the entire console experience, making it easy for people to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system. Xbox LIVE connects more than 12 million members across 26 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox LIVE Arcade, free and premium playable game demos, music videos, TV shows, and movies in the United States as well as new game levels, characters and vehicles for all their favorite retail games. More information can be found online at -us/live.

Netflix is an American subscription video on-demand over-the-top streaming service. The service primarily distributes original and acquired films and television shows from various genres, and it is available internationally in multiple languages.[6]

Launched on January 16, 2007, nearly a decade after Netflix, Inc. began its pioneering DVD-by-mail movie rental service, Netflix is the most-subscribed video on demand streaming media services, with over 277.7 million paid memberships in more than 190 countries as of July 2024.[5][7] By 2022, "Netflix Original" productions accounted for half of its library in the United States and the namesake company had ventured into other categories, such as video game publishing of mobile games through its flagship service. As of October 2023, Netflix is the 23rd most-visited website in the world, with 23.66% of its traffic coming from the United States, followed by the United Kingdom at 5.84% and Brazil at 5.64%.[8][9]

Initially, Netflix offered a per-rental model for each DVD but introduced a monthly subscription concept in September 1999.[20] The per-rental model was dropped by early 2000, allowing the company to focus on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per-title rental fees.[21] In September 2000, during the dot-com bubble, while Netflix was suffering losses, Hastings and Randolph offered to sell the company to Blockbuster for $50 million. John Antioco, CEO of Blockbuster, thought the offer was a joke and declined, saying, "The dot-com hysteria is completely overblown."[22][23] While Netflix experienced fast growth in early 2001, the continued effects of the dot-com bubble collapse and the September 11 attacks caused the company to hold off plans for its initial public offering (IPO) and to lay off one-third of its 120 employees.[24]

DVD players were a popular gift for holiday sales in late 2001, and demand for DVD subscription services were "growing like crazy", according to chief talent officer Patty McCord.[25] The company went public on May 23, 2002, selling 5.5 million shares of common stock at US$15.00 per share.[26] In 2003, Netflix was issued a patent by the U.S. Patent & Trademark Office to cover its subscription rental service and several extensions.[27] Netflix posted its first profit in 2003, earning $6.5 million on revenues of $272 million; by 2004, profit had increased to $49 million on over $500 million in revenues.[28] In 2005, 35,000 different films were available, and Netflix shipped 1 million DVDs out every day.[29]

In 2004, Blockbuster introduced a DVD rental service, which not only allowed users to check out titles through online sites but allowed for them to return them at brick and-mortar stores.[30] By 2006, Blockbuster's service reached two million users, and while trailing Netflix's subscriber count, was drawing business away from Netflix. Netflix lowered fees in 2007.[28] While it was an urban legend that Netflix ultimately "killed" Blockbuster in the DVD rental market, Blockbuster's debt load and internal disagreements hurt the company.[30]

On April 4, 2006, Netflix filed a patent infringement lawsuit in which it demanded a jury trial in the United States District Court for the Northern District of California, alleging that Blockbuster's online DVD rental subscription program violated two patents held by Netflix. The first cause of action alleged Blockbuster's infringement of copying the "dynamic queue" of DVDs available for each customer, Netflix's method of using the ranked preferences in the queue to send DVDs to subscribers, and Netflix's method permitting the queue to be updated and reordered.[31] The second cause of action alleged infringement of the subscription rental service as well as Netflix's methods of communication and delivery.[32] The companies settled their dispute on June 25, 2007; terms were not disclosed.[33][34][35][36]

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