I've actually already taken considerable advantage of the Netflix movies on demand functionality. I didn't really watch Heroes when it came out, but it was available on demand from Netflix - you still can't do more than save it to be added to your queue. So I was able to catch up to the current (last) season. Luckily I did so just before the season finale otherwise I'm sure I would have driven myself mad. I try to avoid getting hooked on series that don't have several seasons available on DVD already. This prevents me from being a slave to television, or at the very least keeps it on my own terms.
At any rate, Silicon Valley Insider has a tidbit from the AP about the news.
Netflix isn't taking Apple's charge into movie rentals lying down. The AP reports Netflix is set to announce unlimited streaming of films and TV shows on Monday, a day before Steve Jobs rolls out iTunes' movie rental service at Macworld.
Previously, Netflix had capped the amount of time of TV/films that users could stream based on their subscription plan. Under the $16.99 per month plan, for example, users could stream up to 17 hours of programming. Now just about all of Netflix's 7 million subscribers will be able to stream as much as they want, an interesting test of the subscription model, especially compared to Apple, which is expected to offer 24 hour rentals of films for $3.99.
A Netflix spokesman conceded this will raise costs considerably; the financial impact of the switch will be addressed on the Jan. 23 Q4 earnings call. Presumably, the fees Netflix pays to Hollywood and for bandwidth go through the roof, but it could mean fewer DVDs sent in the mail, which would lower some physical costs and postage.
Unlimited streaming is the second recent initiative to defend its turf from Apple. Before CES, Netflix teamed up with LG to build a box to bridge the PC-TV divide, a clear challenge to Apple TV.
Now, I've never bought anything off iTunes - and hopefully will never have to because Netflix will protect me. Presently I have 5 at a time from Netflix which is perfect for having three series (currently on Six Feet Under - The Complete Fifth Season
disc 3 of 5) and two movies. I also don't do cable television so Netflix is my primary forms of media consumption.