In a move to steal the thunder from Apple's announcement to allow movie rentals through iTunes, Netflix says that starting today subscribers will have unlimited access to streaming movies.
Previously, the amount of streaming content subscribers could access was dependant on their subscription level. For example, the $16.99 membership allowed for 17 hours of streaming movie content. With the new unlimited plan, all subscription levels, with the exception of the lowest $4.99 plan, will be able to stream as many Netflix movies and TV shows as they'd like to their PCs.
I see this is an attempt to counter Apple's plan to offer movie rentals through iTunes for $3.99 a rental. Apple's service however has a 24 hour limit to the rentals, which is where Netflix looks to have the advantage with its unlimited access.
Apple's service still might have an advantage though since once a movie is rented you don't need to be connected to the Internet to view it - allowing for an in-flight movie on a laptop or iPod.
Netflix's service is streaming video, meaning you must stay connected to the Internet to view a movie rental. This means watching a Netflix movie you've purchased online can't be viewed on a plane or an iPod, Zune, or other portable media player. For those that want to just stay at home and watch a movie, Netflix might be a better option. But movie buff on the go iTunes rentals are hands down the way to go.
Netflix could gain the upper hand on iTunes if and when a partnership with LG Electronics comes to fruition. Netflix announced earlier this month it was developing a set-top box with LG Electronics that will allow subscribers watch movies streamed directly from the Web to their TVs.
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