Industry News: Competition to Crack Streaming Video Market Increases

2010 // December

The New York Times reported this month that more corporations are exploring ways to stream video online, largely in response to the success of Netflix. The mail-order DVD rental giant has enjoyed significant growth in the past 12 months since increasing consumer streaming capabilities. Netflix has stated an intent to widen the availability and ability of this technology, while scaling down the mail-order business model with its higher operational costs. Among new initiatives is an $8-a-month plan for streaming-only services.

According to the article, retailer Wal-Mart is expected to cross-promote its recently acquired media company, Vudu, to gain a foothold in the niche market. Comcast and HBO are among others following suit, allowing customers to either download or have access to streaming content. 

"An entire industry geared toward establishing a foothold in this nascent market has cropped up, streaming movies, TV and other content in both standard and high definition, and offering subscription models," wrote journalist Jason Turbow. "A number of companies have cropped up to present specialized streaming options."

Competition is a boon for consumers, who can soon expect better picture quality, choice and affordability from a deeper pool of providers, the article concluded.    

http://www.nytimes.com/2010/12/03/technology/personaltech/03SERVICE.html?_r=1&ref=netflix-inc