Why Windows Phone 7 Might Save Netflix

Today Microsoft showed off its Silverlight-powered Netflix Instant Watch app, something that will not only help the previously laughable Windows Mobile, but save Netflix in the process. Playable on either 3G or Wi-Fi, the Netflix app looked great at Vegas' MIX10 conference. The app also gives push notification when a new television episode is available -- easily putting Netflix into the Boxee and Hulu category. Have you heard any Boxee or Hulu mobile plans? Me neither. Netflix is now officially ahead of the game.

Netflix needs the support, too, as its primary business isn't looking too good. Once a darling of the startups, Netflix has:

• New competition: Blockbuster and Wal-Mart have jumped into the DVD/live streaming game, dividing an already small pie. Meanwhile, upstart Redbox is going after the DVD audience directly.
• Bigger studio demands: Like Redbox, Netflix has conceded to delaying the availability of the major films. The studios "logic" is that less rentals means more purchasing. Instant Watch, which allows users to live stream media, has more flexibility.
• A dying medium: The iPhone, iPad, Windows Phone 7, and a dozen other signs show that DVDs will soon be going the way of the CD. They are costly, inefficient and undesired.

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