Netflix's "Immediate Viewing" Doomed from the Start?

Thanks to Bella, I found out that Netflix is planning to provide a video on demand service over the Internet, called “Immediate Viewing”, by the end of June. This new service allows Netflix subscribers to browse an ever growing library of 1,000 different movies and then download them to their computer for, as the name suggests, immediate viewing.

Even if Netflix didn’t have to worry about the limited availability of broadband access (only ~38% of America has it) and the hassle involved with connecting your computer to your big screen television; this service could still be doomed. Why? Because there is already a better service available now… Vongo!

Find out how two (2) details might be the end of Netflix’s new service before it’s begun.

Just like my comparison of Netflix and Blockbuster “Total Access”, there are a few key differences between Vongo and Netflix’s “Immediate Viewing”.

• The number of movies you can download each month
• How long you can watch those movies

According to what I’ve found, even if you subscribe to Netflix’s most popular package for $17.99 a month (plus tax), you are limited to a maximum of 18 movie downloads each month. Though admittedly a lot, especially in combination with their mail service, Vongo allows you an unlimited number of monthly downloads.

Another drawback to “Immediate Viewing” is that after a week or two, the movie expires. In other words, you have to download it again (possibly), which would be counted as 1 of your 18, even if you wanted to watch it again in a few months. With Vongo, you can watch any movie you download over and over as long as Vongo is licensed to distribute it.

It’s still too early to tell if Netflix’s offering will be a success. Some say that this type of video rental model will fail regardless of who offers it. That these types of services will get limited cooperation from production studios since they receive nearly half of their revenue from DVD sales.

As always… time will tell. But it doesn’t matter much to me… I’m using Blockbuster “Total Access”.

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