Microsoft Increases Competition with Netflix Streaming
Today’s the first day of E3 in Los Angeles and the annual convention has already generated plenty of buzz within the gaming community (Final Fantasy 13… anybody?). But there’s some news that may affect Apple’s current hold on the digital media market: Microsoft announced that Netflix will offer online streaming for the Xbox 360, available this Fall. What does this mean for Apple?
Last year’s fallout with Universal revoked Apple's rights to offer movies produced by Universal, its sister companies, and popular NBC shows through the iTunes store. Those who own an Apple TV can only view content originating from an iTunes connected home computer and aren’t afforded the luxury of an expansive library (such as offered by Netflix, depending on the service plan). iTunes’ DRM-restricted audio and video files already pose a problem for some, and restrictions such as a limited library of titles could make iTunes the less heralded choice.
The Xbox/Netflix partnership also stirs up concerns as to what kind of competition will follow Apple in the meantime. Last week, the Financial Times reported that Activision plans to capitalize on the success of the Guitar Hero franchise by introducing an online music platform that could rival iTunes.
Competition for iTunes will increase within time, since more consumers will be vying for customization and freedom of movement. It’ll be interesting to see if companies offering DRM-free media and expansive contracts with big-time production companies can in-fact knock Apple back out of the spotlight.
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