Why The Netflix Announcement Is Important

Yes, it gives me one more thing to try in my Year of Living Digitally project, but the Netflix announcement today is much more important than that.

And for those who think it is about saving mailing costs, realize that they’re shelling out $40 million a year to make this happen.

The “big companies” are quickly launching video on demand engines over the Internet. It’s going to be ugly for awhile as we run computers with 6 different downloading programs on them.

But the winners will rise to the top.

And the winner will sell the technology as a Web service.

And anyone will be able to sell video on demand online.

And the middleman dies.

Look at what Netflix did to Blockbuster/Hollywood and your corner rental store.

It won’t be them who does the same thing to Internet video (I expect that will be a small little upstart that we probably haven’t heard of yet) – but the same will be done to Internet video.

Get ready.

Read the thread on this topic at Techmeme.

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