Netflix rumoured to be readying cheap set-top boxes

July 5, 2007 – Rumours have arisen once more that Netflix, the largest online DVD rental service in the US, is preparing cheap set-top boxes that stream content from its Watch Now service via an Ethernet or wireless connection.

According to reports on news portal Engadget, the company demoed two different set-top boxes that stream content during a recent focus group on the matter, both of which were at the rough prototype stage.  The only difference between the boxes was reported to be added component and High Definition Multimedia Interface (HDMI) connections on the ‘Enhanced’ model, costing $100, while the ‘Standard’ model featured just composite and S-Video connections for $50. 

This follows comments by Netflix Vice President of original programming, Eric Besner, back in 2006 that: “the set-top box is just one of the Internet plans Netflix is working on.”  While the set-top boxes have not as yet materialised, the company recently created an ‘Internet TV’ division, and appointed ReplayTV founder Anthony Wood as Vice President.  Woods stated earlier in 2007 that: “I’m here to work with a range of partners to get that video to the television, where consumers watch most of their movies.”