Jason Unger

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Great. Just what we need — another set-top box.

Netflix and LG have announced that they're bringing movies from the Internet to your HDTV … with another box that has to sit in your media cabinet.

(You can hear the excitement now.)

How many companies have tried to do this? MovieBeam? Vongo? VUDU? Akimbo?

You get the point. No one has succeeded in an on-demand movie service before, right?

Wrong!

The cable and telco companies do on-demand right. You've already got their box. They already have the wires. The interface sucks, but it's easy enough to use, with instant startups and no down time.

According to Hacking Netflix (via Dave Zatz), this isn't going to be the only Netflix-branded set-top box. In fact, Reed Hastings (Netflix CEO) says he wants Netflix content in a lot of boxes.

"Our model is that we don't want one Netflix-branded box, we want to see 100 Netflix-capable boxes. We want to be embedded in high-def DVD players, Internet games, dedicated set-top boxes, a wide range of options, not all instantly. This is the first one, a great proof point."

Here's a suggestion: go with the cable companies. Yes, no one likes them, but everyone likes the convenience it affords.

Look at TiVo — they're rolling out software for Comcast boxes. They had a great product that the cable companies undercut in price and convenience. So, they adapted.

Netflix, your movie by mail service was revolutionary. But video-on-demand isn't.

Instead of trying to succeed where others have failed, take your position in the new digital market — as a content provider — and go to the place that needs a fresh face.

Netflix content and cable box convenience would work. I'm not going to go and buy a new box, but if you provide me the content on the box I already have, it's a winner.

You're going in the right direction, but you're starting off in the wrong place.