Rumor: Netflix Streaming Coming To The iPhone
by MG Siegler on August 3, 2009

apple-iphone-in-handOne big story today is that Netflix added ABC content to its streaming service (it actually did this a couple days ago when episodes of Lost started appearing). But there’s a potentially hotter Netflix streaming rumor floating around out there right now: That it’s coming to the iPhone.

Multichannel News wrote a story a few days ago that Netflix’s Watch Instantly streaming service would soon have an app in Apple’s App Store as well be available on the Nintendo Wii, citing an industry executive familiar with Netflix’s plans. Both of these devices would seem to play well into Netflix’s strategy of getting its service on as many consumer devices as possible (already it’s on the Xbox 360, Blu-ray players, the Roku box and built into a few TVs). But this rumor is interesting for a few reasons.

First, Netflix on the iPhone would be awesome, but you have to wonder if Apple wouldn’t worry about it cutting into services it already provides. That has been the basis for a few app rejections, and it would seem that with on-demand movie streaming, it would remove at least some of the need to buy movies for your device through iTunes.

Second, talk of the service coming to both the iPhone and the Wii is interesting because of Netflix CEO Reed Hastings‘ position on Microsoft’s board of directors. While I’m sure Netflix’s overall agenda is outside the influence of Microsoft, remember that Netflix streaming is currently only available on Microsoft’s Xbox 360, and none of the other gaming consoles. This is a big advantage for it in terms of being a living room entertainment hub (which all of the consoles aspire to be).

And one would have to imagine that Microsoft would love to see a Netflix streaming app on its Windows Phones (the artists formerly known as Windows Mobile phones) before it sees it on iPhones. I’m not saying that will happen, but that it may come up between Hastings and Microsoft.

Third, and most importantly, if such an app were to exist, it would undoubtedly bring up the AT&T bandwidth restriction debate again. While AT&T and Apple allow apps like MLB At Bat to stream video over the network, other apps, like SlingPlayer, are restricted to stream video over WiFi only. AT&T has stated that it doesn’t want all this video streaming to further clog its pipes, which is also why it would likely restrict a Hulu app that was rumored a few months ago.

But streaming over WiFi is significantly less interesting than being able to do so over 3G. If a Netflix streaming app were to be released and limited to WiFi, you can be sure it wouldn’t dampen the booing of AT&T that has been going on recently. The fact of the matter is that eventually apps such as this are going to need to work over cellular networks and not just WiFi.

Again, the existence of a Netflix streaming app on the iPhone is very much a rumor based on one source, but it is interesting for the potential can of worms it opens.

[via Hacking Netflix]

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  • I have to believe that apple will shoot this down after shooting down the Google Voice app. I am sure they will cite it cutting into built in functionality and may hurt the itunes store movie sales or some other misnomer.

    • Wait… Netflix Movie rentals, Apple? Oh GOD help us, mommy! We are so “confused”! How can simpletons like us be expected to comprehend TWO movie rental apps on a single computer? OMG! Make the decision for us!

    • If Steve was cool with Disney for adding ABC content to Hulu. I’m sure he would be cool with Netflix.

  • Sorry to correct you MG, but Windows Mobile is the name Microsoft is using for its overall mobile product initiative. The umbrella so to speak. The operating system is still being called Windows Mobile X.

  • That is really cool! I hope it actually comes out and not just die as a rumor!

  • Will this ever be international or is this something the world outside America will just have to “wait n watch” ?

  • Hope the rumor becomes true. It’s vary exciting to see all these advancements in streaming video. Until recently I have been using Hulu to watch my favorite shows but now that Netflix is getting more content I have been using it more. It’s really just a matter of time in regards to when this happens but It would be great to see it soon.

  • I am loving TechCrunh :)

  • This would be awesome. Though… Apple and AT&T will probably have a problem with it. Apple won’t like that it competes with iTunes and AT&T won’t want it on their network

    Ugh! I just wish there would be a day in the near future when you could use your phone freely just like you use the internet on your computer. It’s absolutely ridiculous if you think about it. Imagine if someone like Comcast decided to not allow a service like Netflix because of bandwidth issues!

  • …and since it’s going to compete with iTunes, Apple will reject it just like Google Voice…

  • Out of curiosity, now that Netflix is coming to at least 1 non-PC device that I own (Wii, little faith in it coming to the iPhone), …
    If I install Netflix on a non-PC platform will that require that I update my PC to the SilverLight plug-in?
    I ask because once you upgrade 1 PC to SilverLight, all your non-SilverLight PCs stop working. As I am blissfully happy with my Media Center with its non-SilverLight plug-in (it allows downloading of movies, still DRMed), and have no desire to move to the SilverLight plug-in.

    BTW, with the downloaded movies, Windows Media Player still checks the DRM once the file is played. But, it allows two things I am keen on (1) extensive fast forwarding & rewind (2) a good way to keep track of what episodes in a TV series you have watched (If they are downloaded, I haven’t watched them. Delete them as I watch them.)

    • I don’t exactly understand what your asking but I do know that many non-PC Netflix viewing devices seem to just work right out of the box and don’t interfere with anything.

      I have Netflix on my TiVo and I have never had to worry about Silverlight at all. Plus, if it came to the iPhone, they wouldn’t be able to use Silverlight. My guess is, some platforms, perhaps the Wii included convert the content and don’t use Silverlight at all. Though, I use Silverlight for the Netflix Boxee plugin and nothing has happened to the non-silverlight devices.

  • I was about to cancel my netflix subscription, because I hardly ever use it. I will suspend it now till this app is out and then reactivate it. Thanks MG.

  • This will surely be responsible for some of the largest phone bills known to man. Interesting.

  • If the app is WiFi only, people would be better off watching long-form videos over laptops instead of iPhone.

  • I have Netflix and never download any movies or TV shows on iTunes unless I absolutely cannot wait for it to come out on DVD (so really just TV shows). In this case, iTunes wouldn’t lose any revenue, since I don’t buy that content anyway.

  • Sorry to sing a sad tune, but this is unlikely to happen.

    Netflix uses the Windows Media DRM facilities to protect their streaming content and Windows Media DRM license disallows implementation on non-Windows platforms. This is why Neflix streaming was not available on the Mac before SilverLight supported Windows Media DRM.

    The points is subtle here, Windows Media _format_ can be implemented, and is implemented commercially on the Mac (Flip4Mac), but the _DRM_ cannot be implemented by third-parties.

  • Meh. Netflix streaming on the 360, even when using ethernet, sucks. Can never get 4 bars, so the video auto adjusts and it looks like crap.

  • Even if streaming was available through 3g, AT&Ts network couldnt handle it, even in low quality mode. It would be like playing the latest first person shooter, with all the graphic bells and whistles turned on, highest resolution, yet running through at 28.8kbps modem. Fix AT&T, then start these rumor mills…otherwise its just a waste of time for Netflix to even develop for AT&T’s 3g

  • I could be missing something here but I’m pretty sure that the only video codec compatible with the iPhone is H.264. Netflix streaming only runs through Windows Media Player or Silverlight and there’s currently no Silverlight on the iPhone.

    I believe that WMP/Silverlight supports H.264, WMV and VC-1 but it would be a big departure from Netflix’s current implementation to run this outside of the WMP/Silverlight ecosystem.

    • I would guess that the implementation for iPhone could involve different encoding level anyway (after all, the iPhone is 480×320 screen resolution).

      Also, the clients for TiVo & RoKu are probably NOT silverlight-dependent, that was chosen for web-browsers, specifically.

  • This will be cool… but it’d be even better once Netflix starts streaming GOOD content… the content in their streaming area needs work and some updates

  • The wifi angle is not too bad as it seems as we move into the future. In New York, Cablevision are rolling out Optimum Wifi to blanket it’s coverage areas and AT&T and Verizon both own pieces of the “white space” spectrum from the FCC, which can provide a blanket 100MBPS wifi service across the USA.

    I just purchased a iPod Touch the other day only because in my travel circles I always have wifi access and due to this the Touch is allowing me to leave my laptops at home.

    • They won’t own White Spaces. They won 700 MHz auction. White spaces is going to be unregulated public usage, similar to Wi-Fi. Will be interesting to see how that plays out, as it could potentially be incredibly disruptive.

  • Hope there is some fact to this, would love to see it happen.

  • Hmm watch netflix on a small phone connected to wifi or watch netflix w/roku box connected to projector, decisions, decisions…

  • Could Apple find a way to collect portions of revenues from bandwidth hog apps and funnel them to the network providers for network improvements? Would these dollar amounts come close to bringing the network improvements required to make the applications viable over the mobile networks?

  • With that MSFT dude on the board of Netflix I wonder if Apple will even approve this app.

  • Plenty of negativity surrounds the approval process for the AppStore now. I would also like to see this made available but the spotlight is on apps considered competitive. I’m still awaiting the outcome of Spotify and whether that will be rejected..

  • Netflix sent out a little questionnaire about expanding to other platforms a while back and it asked about these devices and about an upgrade fee. We’re all betting that the fee would be associated with moving the platform away from Silverlight for these or other devices.

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