Tuesday, July 15, 2008

Netflix Does Not Undermine Xbox Live Marketplace Rentals

Microsoft's Shane Kim couldn't be happier to have Netflix on Xbox 360, and he's not concerned with Netflix possibly cannibalizing Video Marketplace content.

E3: Kim: Netflix Does Not Undermine Xbox Live Marketplace Rentals

With Microsoft today announcing that it's formed a business partnership with Netflix to feature on-demand movies on Xbox Live, some may be wondering if this actually could have a negative impact on Microsoft's own video marketplace downloads. In a special roundtable that GameDaily BIZ was invited to, Shane Kim, Corporate Vice President, Strategy and Business Development, Interactive Entertainment Business, insisted that it's absolutely not detrimental to the company's video marketplace.

"I think we look at it as additive; I don't think we're at the point where we've got so much content that we start to cannibalize the other content that's available on the marketplace," he said. "Adding Netflix just adds tremendously to the library, but I don't think any of us would say that they would get all the content that we eventually want to offer folks."

What about redundant content? Kim acknowledges it's a real possibility since Netflix has a very wide array of content, and he noted that Microsoft is still actively pursuing partners and further content on its own for video marketplace.

Kim also clarified some of the Netflix news from the press conference. While a Netflix subscriber on Xbox Live may share his movie with another Xbox Live user, that friend must also have a Netflix subscription. via GameDaily

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Author & Editor, Jason Kiwaluk

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