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netflix-logoNothing is going to usher in wider adoption of broadband internet more quickly than online video streaming, says Netflix CEO Reed Hastings. At the NewTeeVee Live conference this week, Hastings called his company’s streaming video service “a killer app for broadband data”. According to Hastings, the main reason customers upgrade to faster internet service isn’t because of email or basic web surfing—it’s because of bandwidth-demanding video streaming such as Netflix’s service.

Much like the iPod and iPhone have drawn more customers to purchase Macs from Apple, Hastings says that Netflix’s video streaming  can create a “halo effect” that sells more broadband. Netflix is quickly expanding the number of devices that support its streaming service, which Hastings feels creates a “symbiotic relationship” with broadband because as the number of compatible devices increases, so does the demand for bandwidth to support them. Says Hastings:

“Netflix is going to try to wire up every device with its application — Wi-Fi is just a $10 part. . . We’re making great progress there,”

Is Hastings right about online video compelling consumers to upgrade their Internet service? Do you already own a Netflix streaming-capable device, or do you plan to in the near future?

[via NewTeeVee]

4 Responses to “Netflix CEO: We’re a “Killer App” for Broadband”

  1. Visitor [Join Now]
    Mike [visitor]

    What is interesting is that he expects ISPs to cover the costs of the streaming of their videos.

    As more and more machines are brought online to streaming, that will require additional infrastructure and who is going to pay for that?

    I can see ISPs switching to a pay as you go type scenario and charging per gig downloaded from Redbox. All of a sudden your cheap subscription isn’t going to seem so cheap if you have to pay internet fees on top of the subscription cost.

  2. Visitor [Join Now]
    keith [visitor]

    What about those of us who live a mile or more from the cable or DSL line? I’m still on lousy dialup internet. The phone and cable company dont want to spend the money.

  3. Visitor [Join Now]
    aikanae [visitor]

    I laughed too. I have “hi-speed” broadband in the middle of the 5th largest city. There’s no way that $60/month cable is fast enough to stream an entire movie. There’s no competition on the horizon. I know a couple of months ago Comcast capped their broadband in some areas to a level so low that a movie a week was the max – if you didn’t do anything else. Netflix’s best bet is to chop the movie up into 9 min sections and post it on You Tube.