Today, Sony and Netflix announced an agreement that will bring the Netflix movie service to the PlayStation 3 game console.This follows a long line of partnerships that are putting the Netflix service in a wide variety of consumer electronics devices including game consoles, network-connected TVs, and more.Combined with the previous partnership with Microsoft Xbox 360, this now creates the availability of the service in a large installed base of game console households.
The Sony offering is available for free through Sonys PlayStation Network, and only requires the consumer to have a membership with Netflix.This is in contrast to the service through the Xbox 360, which requires a membership to Xbox Live at $50 per year.However, I dont believe this cost savings offers any real advantage to Sony.While a small percentage of consumers may be swayed by this savings, most video game console buyers are looking at the console primarily as a gaming platform.And, to that end, they typically pick the one that has the games they want to play, especially where exclusive content is concerned.
The bigger implication of these deals is the continuing move of bringing digital entertainment to the living room.Netflix is doing a great job of using a shotgun strategy, as there is no clear winner at this time in the digital living room.It is likely that a number of CE devices will play the role of the hub to deliver online content: game consoles, TVs, STBs, PVRs, Blu-ray players, and even dedicated boxes.It is a very smart move to partner with as many of these devices as possible, especially in the short-term while a shake-out takes place.
