Netflix expanding to other game console platforms
Let's not jump the gun here and claim that Netflix will be hitting the Wii and PlayStation 3 anytime soon, but they are looking for an experienced engineer to lead the gaming platforms team. — From the job listing:
Context & Ripple Effects
Netflix's streaming push has been accelerating on one screen at a time: Watch Instantly went live on the Xbox 360 in November 2008, backed by 48-hour trial cards slipped into game cases, while the Mac beta opened to all users the same month. The physical side of the business, by contrast, is straining — Blu-ray rentals carry a $1 monthly surcharge and longer waits than DVDs, giving the company every reason to move members onto streaming.
Now a job listing seeks an experienced engineer to lead a dedicated gaming platforms team, which Gamasutra also picked up the same week. Nothing in the listing names hardware, so talk of the Wii and PlayStation 3 remains unconfirmed — but building a platforms team implies work beyond the current Microsoft arrangement.
First-order effects
- Netflix gains in-house capacity to port Watch Instantly beyond the Xbox 360, ending what is currently a single-console exclusive for its streaming service.
- Sony and Nintendo become the obvious next negotiating targets, since Microsoft's November 2008 launch showed console streaming drives subscriber acquisition cheaply.
Second-order effects
- Console makers face a licensing-versus-own-store decision: hosting Netflix means conceding shelf space to a rival catalog, but a marquee streaming app is a proven hardware differentiator against competitors who lack it.
- Netflix's own pricing pressure eases as more subscribers stream instead of renting discs, shrinking exposure to the Blu-ray surcharge complaints and slow-disc waits documented in late 2008.
Third-order effects
- If the pattern holds — one console deal, then a platforms team, then broader hardware reach — consoles drift toward being commodity pipes for subscription catalogs, shifting leverage from hardware makers to whoever owns the library.
- Each new device added lowers Netflix's marginal acquisition cost, pointing toward a multi-screen model where distribution breadth, not any single partnership, is the moat.
The trend: Subscription video is moving from single-platform exclusivity toward every-screen availability, with engineering hires telegraphing hardware deals before they are announced.