Internet-based video rental company Netflix and TiVo have confounded industry doubters who said the partnership would not work. They have persuaded Warner Brothers to agree to allow some of its content to be used in trials of the two companies' new service.
Instead of taking orders online and posting DVDs to its customers, Netflix is offering digital downloads over TiVo's hardware. While the strategy makes perfect sense in technology terms, there is a stumbling block. Netflix does not as yet have online distribution rights to the movies it wants to offer.
But the Warner deal could be an early indication that the movie studios might be keener to encourage legitimate digital downloads than was previously thought likely.
Lovelacemedia | 23.09.2004