Many home TVs now have five or six boxes on top of them: TV cable boxes, DVRs, satellite dish devices and perhaps an Unbox from Amazon (NASDAQ: AMZN). NetFlix (NASDAQ: NFLX) wants to add to that gadget explosion.
NetFlix already has 8.2 million subscribers, so it does have a built-in base that many competitors do not. Its new device will only cost $99 and will give instant access to a large list of titles. According to The News York Times, the new system "will allow customers to play thousands of movies and shows on their televisions instantly, for no charge beyond their normal subscription fee."
While it is impossible to handicap the success of these products, the NetFlix offering may do well. For starters, very few competitors start with huge pools of customers who are already buying products from them. In addition, the box is remarkably cheap. While the selection of titles is not special, the cost of playing them is modest because there is no fee beyond the standard NetFlix subscription fee.
NetFlix still has to deal with the problem that the number of wires into the TV is way too large.
Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.
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