Apple vs. Netflix: How do they stack up?
The big gadget news Tuesday morning was Netflix’s entry into the set-top box market, with the inevitable comparisons to Apple TV.
So how do the two devices stack up? Technically, it’s an apples and oranges comparison. One box is a special purpose computer with a small (40 GB) or big (160 GB) hard drive built-in. The other is designed only to stream video to a TV.
But to consumers looking to watch their favorite movies and TV shows on demand, technical differences will mean less than the cost of the device, the cost of the service, and whether the titles they want to see are available for download.
In terms of content, Netflix (NFLX) seems at first glance to have a big edge, with 10% of its 100,000-plus library available for download. Unfortunately, that 10% is mostly older movies (5 years or more) and TV shows, with some indie flicks thrown in.
Apple (AAPL), by contrast, has a much shorter list — in early May it finally delivered the 1,000 movies Steve Jobs promised back in January. But thanks to its latest round of deal-making, many of those titles are new releases, available the same day they come out on DVD. [Reader milo points out that those 1,000 titles do not include TV shows, whereas Netflix's 10,000 do. Apples and oranges, again.]
Apple also has an edge in terms of quality: 720p versus 480i; Dolby versus mere stereo. Also, some of the Netflix titles that should be wide screen aren’t properly formatted.
But the price is right on Netflix. The player, made by Roku, is less than half the price of the entry-level Apple TV (and a lot less than the $329 high-end model). And if you’re already a Netflix member paying monthly dues, you get unlimited downloads for what feels very much like free.
Given the new competition, it will be interesting to see whether Apple rethinks its current pricing scheme: $2.99 to $3.99 to rent, $9.99 to $14.99 to own.
This ridiculous reading all these posts from people dissing the AppleTV, when they’ve never owned one. I won’t diss the netflix box, but as an AppleTV owner it is AWESOME! I stream movies/TV from my server, I can watch YouTube, I can buy or rent movies/TV Shows (good/current selection) from itunes. Plus my whole family LOVES to watch our pictures stream by, while listening to our itunes music library. What else does all that?
heres my solution… i bought an apple TV 40gb and I’m enjoying the comfort of having all my movies backed up in a server to watch on my 52″ TV in H.264 (GREAT quality by the way) and I’m a subscriber to netflix where i can pop in a dvd in my iMac and view it on my apple TV without a dvd player or the extra unnecessary box by netflix… so if i do get tired of nexflix i can just cancel and still luv the Apple TV and not have an unnecessary box in the corner of my closet… its only $100.00 more and you can do SO MUCH MORE…
don’t forget you don’t need the roku box for netflix because next month Netflix will be streaming their content free for netflix members on Marketplace Live for the XBOX 360
NetFlix does not support the Mac OS for
downloading their video. Strange.
ex ped: Strange but true. As Netflix explains on its site, it’s because Apple won’t license its digital rights management technology (DRM) to them.
Good to see some competition, but the NetFlix box is pretty lackluster. As a NetFlix subscriber, I’d never buy this thing. Apple TV gives me access to content on my home server, in addition to movie rentals. The NetFlix box is a one trick pony and why bother if A/V quality is weak at best?
Apple’s product is vastly superior and puts the user in control. Sure, I can buy or rent movies through iTunes if I want to pay. But I can also load up my home server with movies in H.264 format and watch them with Apple TV. I can also watch TV shows I’ve bought on iTunes, check out YouTube, play all of my music on my home theater system, check out my photo albums, etc. And none of this costs a penny extra.
Also, to Steve in San Antonio, Apple TV is not a DVR. DVR = Digital Video Recorder. The Apple TV does not record anything. Instead, it provides access to content streamed from Apple via rentals, streamed from your home computer(s), YouTube, etc. And how exactly is the NetFlix box a “better value”? It costs $100 to buy and only works if I’m paying NetFlix a monthly fee. What happens if I cancel my service? I end up with a useless box! Apple TV, on the other hand, provides a wealth of features that don’t require a monthly fee. I can rent movies from Apple if I want to, but Apple TV can do plenty more without any extra expense (ie: mandatory subscription). In my mind, Apple TV is a better deal.
Hi Philip, exactly what does “ex ped” mean? I can’t find a definition anywhere on the net.
ex ped: Sorry, that’s a bit of Time Inc. telegraphese that dates back to the day when overseas communications was billed by the character and you needed a short way to say “here’s my two-cents.” It means, literally, “from Philip Elmer-DeWitt.” Thanks for asking. Albest.
I always laugh when people hate on Jobs.
I laugh, all the way to the bank. $1000 invested in AAPL in April 2004, is worth over $25,000 now while MSFT has been essentially flat in that time.
Yeah, Jobs sure is fooling people. What idiots us fanbois are to sniff his arse. Smells like… money.
Netflix has a large library of Bluray discs that are full 1080p HD with no compression artifacts or problems. The 720p from Apple is highly compressed (as will Netflix when they go HD). It’s going to be a compromise for some time because of bandwidth issues.
Most people are better off with Netflix streaming for near-DVD quality movies on-demand and Bluray in the mail. Hook up a PC to your HDTV, pop in a $140 Bluray drive, and you have a great solution.
The ten thousand versus one thousand comparison seems to be bogus – in the case of Netflix, it looks like they are including TV episodes in the count, while the iTunes number is only movies.
For a fair comparison, it should be the number of MOVIES Netflix has (which I suspect is much closer to 1000 if not much lower), or add TV episodes to the iTunes number (which may be well more than 10 thousand).
The article should correct that, currently it’s pretty misleading.
ex ped: Updated to add your caveat. Thanks.
I think it should also be stated that with your Netflix subscription you get DVDs. You can really get a lot more movies at a lower price with Netflix.
It’s worth mentioning that the AppleTV can stream home movies, photos, music, and other media from your home computer to display on your television. In addition, its functionality is available via on-screen menus instead of requiring a separate web page.
So, is that Indy, as in “independent studio” (indie), Indiana Jones, or movies filmed in Indiana?
ex ped: The former. Thanks for the catch.
To Robert, neither Apple nor Netflix created either of their devices, they are all just repackaging of existing technologies. Apple TV is a DVR with a network connection instead of an antenna connection; and Netflix is a streaming media box (remember Roku, the builder has been shipping these for years). Netflix is already offering this through a PC, the box just moves it to the TV. Netflix will work a deal for the content and then it will beat Apple easily. For those who just love to love Apple, keep paying… For those who want better value, stay away from Apple.
If it doesn’t provide HD content, and with Dolby sound, no way am I interested.
Two of our four sets are HD, one 36″ and the other 50″ With surround sound audio.
Standard def just doesn’t cut it anymore.
Out of date before you buy it. From their web site:
The Netflix Player follows the Wi-Fi standard and is compatible with 802.11b and 802.11g networks.
Sloooooow with pauses and glitches.
Plus it is one UGLY box.
$8.95/month but is that for 3 movies / month? I don’t think they’ll let you watch as many movies as you want for 8.95.
And yes, AppleTV is much more than Movie Rental box.
Music, Photos, TV Shows, Video and sound podcast, YouTube, Flick, .Mac etc…
And it’s just the beginning.
I rented The Brave One on HD. Pretty amazing quality.
And I do have my DVD on AppleTV and they look awesome.(thanks Handbrake). Ideal for kids who are never tired of wathing them over and over.
ex ped: Regarding your first question, yes. All you can drink for $8.95 a month, per CNET’s review: “unlimited viewing with no additional charge beyond standard ($8.95 or higher) monthly Netflix fee.” (link)
A *white* box in my living room, where nothing else is white (and hasn’t been since the ’80s)?
No thanks.
Just to be clear, the HD’s I’ve rented through iTV were priced at $4.99, not $3.99. You might want to update your table.
One hint for watching: For HD’s, wait a couple of minutes after the iTV says it’s ready to watch. My cable modem is prone to have varying download speeds. I suspect that when the iTV says it’s ready, it assumes the download rate is going to be constant. At first, I had a film “freeze” part way through watching while the download “caught up”, but never since I started waiting a few minutes before playing.
ex ped: What movies did you rent at $4.99? I poked around quite a bit and the highest price I could find was $3.99.
Apple sues them for what? Making a device that transmits signals to a box than then transmits them to a TV all across copper wire? Seems to me that apple is infringing on every single cable company out there.
Netflix has also been serving movies in one shape or form through the internets for much longer than apple. Moving to streaming is the next logical step now that a large customer base has speeds sufficient to actually stream data.
I really wish you Apple fanboi’s/Steve Jobs arsesniffers would just stay out of forums.
$9 a month, no HD, no Dolby capability, no 720p, no new releases. $108 a year subscription fee. No movie storage, no music, no photo, just a plain network connector.
$0 a month, 100HD, has dolby, has 720p, new releases when DVD is out, $3-$4 per movie. $48 a year for 1 movie/month or $192 a year for 1 movie/week. Can store my movies, photos (slide shows) and music and play back.
Netflix is cheap but there is nothing to watch.
Apple TV is more expensive but there is new releases to watch AND has movie storage, music and photo.
I do not believe they will be competing in the same market at first. Apple will be the high-end box that does a whole lot more to meet a videophile’s needs. Netflix will be a poor-man’s box.
As for the labels? They are stupidly muddying up the water by NOT giving consumers better choices but a mish-mesh of confusing lower quality choices. All to get even with Apple? How stupid and greedy.
I will keep my Apple TV for now until Netflix streams new releases in 1080p. Until then, I will stick with DVD and BluRay.
I hereby christen thee “iTV Killer-of-the-week” Just another lame copy, not near as good, but cheaper!
@Robert:
Roku (and quite a few others) had video streaming devices YEARS before Apple did. Apple is never on the real cutting edge; they just absolutely perfect existing good ideas. They did not invent the PC, mp3 player, or mobile phone, but they certainly improved on the existing devices’ functionality by leaps and bounds.
I am surprised to be first to comment. In my opinion, all HW issues a side, the one with bigger and newer catalog wins. I am still finding myself using different services to get movies based on availability. Studios must be more aggressive at experimenting in different delivery methods. As consumer, I get mad that on the nights I have time to watch a movie and willing to pay for it, I have limited choices. REDBOX has better movie selection then some of the online offerings. ismashphone.com
The comparison table should have a column at the left that says “AppleTV” and “Netflix” so it’s clear which row of specs refers to which product.
Also, there are other benefits to the aTV as well, such as streaming music, photos, Flickr, etc.
ex ped: Chart fixed, as you suggest.
You failed to mention the huge advantage that the Apple TV has with being an extension of Itunes/Iphoto. Your complete music and photo library are accessible thru the TV. You can also buy TV shows. You can build your own movie library by Ripping movies off of DVDs with handbrake. Plus you have access to many video Podcasts
I just purchased the low-end iTV. One aspect I’m seriously impressed with wasn’t even discussed in your article: the interface. How do these two interfaces compare? Frankly, I’m happy as a clam! In fact, I wish I could control my whole tv through their interface – it’s THAT slick!
Hopefully the references to 420i should really be 480i.
ex ped: Thanks for the catch. Fixed.
The Netflix device does 480p, not 420i. Also, the Netflix device will be upgraded to 720p via a firmware update.
Netflex’s devise is essentially the same devise Apple CREATED — but it’s black.
I sincerely hope Apple sues these people.
ATV’s killer advantage over Netflix is surely iTunes music; TV shows et all, YouTube and PC/Mac photo wirelessly via menu on your big-screen TV. Try doing that lot with your Netflix box.
There is also posed the threat that at any time Apple can release software/firmware upgrades that will overnight add new features, capability – MySpace, Facebook – to grow its already formidable product.
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So I must be the smartest guy on here. You are all arguing which is best. The real answer is compromise. I have both. I use my xbox360 just like a roku for my Netflix streaming. And all the stuff I really want right now I buy through apple tv. But if I can wait 2 days to get a DVD from Netflix then I burn it into iTunes so I can watch it on apple tv and my iphone. Then if Netflix ever loses their DVDs. I have one backed up for them.