Is Netflix developing an iPhone application?

That said, there may be some limitations, including access restricted to local wi-fi connections, not 3G networks. These limitations would be nothing new for iPhone users, as other bandwidth-intensive apps for the phone are limited. Another problem would be the limited battery life of the iPhone. Could you imagine watching the first two hours of a movie, then having the phone's battery die right before the ending? I mean, how would anyone ever know what happens to the Titanic?

What would such a move mean for Netflix's competition? Again, I feel that this is the natural progression of movie-streaming technology -- I just hope that the people driving alongside me on the highway aren't watching something on their iPhone rather than the road. Will this technology be enough to push Netflix ahead of its movie-renting rivals? At first, yes.

However, unless there is an exclusive deal signed, it would stand to reason that Netflix's competitors will eventually develop such an application and technology. Nevertheless, Netflix could enjoy the prosperity of being the innovator rather than an imitator.