Analyst: Xbox Live a 'Gold Mine' for Netflix

By Nick Breckon, Jan 27, 2009 4:57pm PST Wedbush Morgan analyst Michael Pachter is predicting that the partnership between Microsoft and Netflix will lead to big subscriptions rates for the rental service amongst Xbox Live users.

Xbox Live gained the Netflix streaming video service on November 19. The service offers 12,000 streaming standard definition and several hundred HD videos to Xbox Live gold and Netflix subscribers.

Pacther estimates that 800,000 Xbox Live users were Netflix customers when the service launched on Xbox Live, and guesses that some 200,000 have joined Netflix in the last quarter, according to GameDaily.

"We believe that the Xbox Live Gold membership is a proverbial gold mine of potential members, and expect to see as many as 1 million join as Netflix members in the next year," said Pachter.

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  • I love the service. It seems to be strongest with TV shows, but catching up on previous seasons of series I have become interested in lately is a lot cheaper on Netflix than it would be if I had to buy the DVD sets.

    Their movie selection is not great if you're looking for the newest releases, but that's what the basic DVD delivery service is for. I've also noticed that the amount of stuff they have available on the Instant Watch service has grown very, very quickly.

    I have had a couple nights where Optimum Online must have been sluggish in which the system had to re-buffer a movie and lower the picture quality, but frankly the difference was negligible the few times it's happened.

    Finally, I think that there will come a time when we will be able to make selections from our 360, but currently the 360 is basically a glorified Roku, with no real function beyond that of a limited terminal. That might take a while to change, but I think it will change, eventually.