Pachter: Xbox 360 a 'gold mine' for Netflix growth

by Randy Nelson { Jan 27th 2009 at 6:30PM }

All-knowing, all-powerful games industry analyst, Michael Pachter, sees the partnership between Microsoft and Netflix as a very good thing for the latter's bottom line. GameDaily quotes the silicon seer as calling Xbox Live a "proverbial gold mine" for Netflix.

How's that? Pachter estimates that roughly one million Xbox Live Gold members are also Netflix subscribers, and that 200,000 or so of them signed up for Netflix after the debut of the New Xbox Experience in late November, 2008. Pachter's posse of prognosticators at Wedbush Morgan Securities feel that the influx of 360 owners to the video rental service "will continue at super-normal levels for quite some time."

In fact, Pachter expects to see "as many as 1 million [XBL Gold members] join as Netflix members in the next year," and furthermore predicts 35% of those who buy a 360 in 2009 will also purchase a Gold membership, hence the proverbial gold mine. Note to Netflix: We suggest you nix any plans to add the Leprechaun films for Instant Queue viewing, lest you wish for the rapscallion to make off with said gold.

Tags: michael-pachter, netflix, new-xbox-experience

Reader Comments (Page 1 of 2)

WRE @ Jan 27th 2009 6:34PM

I signed up after and I think it's an awesome service!

macgyver @ Jan 27th 2009 6:37PM

same here, and i signed up for the 3 dvd's at a time plan. i'm sure i'll downgrade to a smaller plan after catching up on all netflix has to offer me, but for now its amazing catching up on my Mystery Science Theatre 3000!

AoE @ Jan 27th 2009 7:09PM

I canceled my netflix account about 6 years ago... and signed up again the moment this service premiered.

Markez (Rubberband Banjo till Death) @ Jan 27th 2009 7:14PM

Yeah I signed up because it was on 360, now I'll never set foot in a video store again. Probably wouldn't have bothered with Netflix otherwise. Been watching Weeds in the instantwatch and been going through the 1st season of Alias via mail.

Seriously though, what a big 'DUUUHHH' for Pachter, what a moron. This was real hard for him to come up with after Netflix came out about how strong they're going right now revenue wise. Good stock to hang out to for the long haul. Dipped down to 17 a share last October and now it's been hovering in the 30s. Good stuff thurrrrr.

Chirag @ Jan 27th 2009 10:44PM

Hey,
How is there a screen shot of blade runner on the instant queue?
I can't add it on my netflix instant queue

why not the LS2LS7? @ Jan 27th 2009 10:53PM

Zack11190:
No they aren't. I just checked.

The non-extended versions are available for streaming. The extended ones are not.

Fafhrdd @ Jan 28th 2009 7:59AM

I did the same.... Signed up for Netflix after the launch of the NXE.

It has been completely awesome and with it I truely feel that MS has taken a HUGE step in making the xbox 360 the focus point of all media in my house.

Xta Large (Formerly Fatass) @ Jan 27th 2009 6:35PM

lol Pachter

I could have sworn that I read news that directly contradicted this guy's latest analysis a few days ago.

Then again, I can't remember the last time this guy's guesses were in the ballpark of reality.

I dunno, though, he may be right here. Netflix is great, the 360 is great... having Netfilx available through the 360 is two times the greatness.

Drew Broadley @ Jan 27th 2009 7:24PM

If only they would release it to the rest of the world....

Chris @ Jan 27th 2009 6:39PM

I had downgraded my netflix to 2 per month, but upgraded it again once the streaming service on Xbox was added. A lot of these tv shows and movies are things I wouldn't want to wait for in the mail, but on a whim they're cool.

Now Netflix just needs to get on top of adding more streaming content, they've got a LOT of really bad and mediocre stuff up for streaming, but the 4 and 5 star movies are pretty scarce.

cuso26 @ Jan 27th 2009 6:39PM

This is my only regret in buying a PS3. Netflix is FAR more superior than the PS Store's rental program (where you pay $5.99 for one rental) and though I'm not sure if NF will ever make it to PS3, Netflix would be stupid not to try and work a deal out considering that's another market to tap. Not to mention they could rent the Blu-ray movies over PS3 service as well (ok, maybe not so much - my HDD screams at the possibility)

PSN: Aggie_CEO @ Jan 27th 2009 6:50PM

give it time dude.....

Kodros @ Jan 27th 2009 9:19PM

For $30 you can get Netflix on your PS3. The downside is that the software runs on your PC and it streams it to your PS3. I picked it up and it's a really nice piece of software.

Jared @ Jan 27th 2009 9:24PM

Aggie, you need to stop with this PS3 worshiping. Seriously, PS3 does not have Netflix. It may NEVER get Netflix. I was just reading your comments over the past few days and they are filled with ignorance to the point that I hate even seeing your avatar. "give it time dude" NO! Don't give it time! Buy an Xbox if you want instant streaming to your TV. If you want MGS4 or Lair, then buy a PS3!

runciter @ Jan 27th 2009 9:51PM

To be fair, renting movies via XBLM is comparable in price (never plan on doing it) and yeah it would make sense for Sony to add it to the PS3, but that likely means Sony won't do it. Then again, looks like they don't have an option as Netflix on game consoles is exclusive to Microsoft's box... not sure how long that exclusivity agreement is... http://www.microsoft.com/presspass/press/2008/jul08/07-14instantstreampr.mspx

Patrick @ Jan 27th 2009 6:41PM

"All-knowing, all-powerful games industry analyst...."

ROFLMAO! Anyone who reads Joystiq could make the predictions Pachter does.

Strategy_Panda (Pot & Spoon 4 Life) @ Jan 27th 2009 11:07PM

apparently you don't understand what his actual job entails

Patrick @ Jan 28th 2009 12:03AM

@ Strategy Panda

I never said I did. I just said that anyone can make the predictions he does.

Gex @ Jan 27th 2009 6:41PM

The movies in instant watching section for the most part suck. The service is cool, but after the free trial was over I canceled since the only good movies were so few I watched them with in the span of two weeks.

KobeBryunt @ Jan 27th 2009 6:50PM

Yeah the movie selection is a bit dry of blockbusters but if you're into documentaries nothing beats it. Plus you could all always rent physical movies this more of a added bonus :)

Etchasketchist @ Jan 27th 2009 6:52PM

The streaming movies on Neflix do not suck. They are just very very odd. There are some incredible films on the service that I would never have watched otherwise. It's like a huge dollar bin at a record store. Digging is rewarded. Casual browsing or looking for something specific will leave you disappointed.

The Espiritu (Viva La Joystiq!) @ Jan 27th 2009 6:59PM

Yeah, you're not gonna see any blockbusters in there, you'll probably have to wait for at least 2 to 3 months for the new movies to come in. Or you can just go ahead and rent 'em.

Gex @ Jan 27th 2009 7:03PM

They do suck, heck its one of the main complaints from people in the netflix forums. Indie does not equal good, foreign low budget horror flicks almost universally suck and one can only watch so many documentaries especially when their about topics you have no interest in. Like you said its more like a dollar bin, and those things suck. There are some gems, but they are few and far between if block buster can get its act together they can seriously put the hurt on Netflix by just simply improving the selection when they have their instant view service up and running.

KobeBryunt @ Jan 27th 2009 7:07PM

Actually not all indie movies suck. There's a decent selection in there to make it worthwhile

why not the LS2LS7? @ Jan 27th 2009 7:08PM

I'm totally into documentaries!

32 of the 9 items in my Netflix queue are documentaries. Of these 9, 4 are available for streaming. And in 5 days, it'll be 3, as Word Wars won't be available in February.

I would say the statement "for documentaries, nothing beats it" is not true.

Markez (Rubberband Banjo till Death) @ Jan 27th 2009 7:10PM

Watched Alien not too long ago off it. Forgot how awesome that 1st one was.

Gex @ Jan 27th 2009 7:12PM

I didn't say indie movies suck, I said "indie movies does not equal good" as in a movie by simply being independent automatically makes it good.

The Espiritu (Viva La Joystiq!) @ Jan 27th 2009 7:20PM

@LS2 LS7

I recommend you this documentary if you're a Football/Soccer fan or you just like sports:

The Fifa 2006 World Cup Film - The Grand Finale

Is narrated by Pierce Brosnan!

Jcarpio @ Jan 27th 2009 7:23PM

To add to this.. thanks to the service I could cancel DVR subscriptions to 30 Rock, the office, heroes and Friday Night lights.. plus no commercials

Etchasketchist @ Jan 27th 2009 7:24PM

Dollar bins do not suck. I could rock a party with records I got for 99 cents a pop. Thinking everything that isn't exactly what you want "sucks" sucks. Again, if you just look for movies you've heard of or seen before, you're going to be grouchy. If you actually watch the movies that are there, you'll be surprised and delighted.

roger @ Jan 27th 2009 7:26PM

Crap I didn't see that when I was using my trial period, and Pierce is great in documentaries. I saw the one he narrated for a documentary about dolphins on PBS in HD and it was absolutely awesome. Between HULU and PBS in HD I really have to desire for Cable, but anyone that can come up with instant watch and a GOOD selection of movies and I'll pay for that.

Shmil @ Jan 27th 2009 8:06PM

I've managed to find over 100 instant watch movies/television shows to put in my Instant queue that I want to watch, so no I wouldn't say they suck. I went to a Blockbuster for the first time in about 6 months the other week and I had a hard time finding what I was looking for. Blockbuster has their movies broken up into 4 main genres, Action, comedy, drama, and kids. I will say that Sunshine (the movie I was looking for) doesn't belong in the action section. Fuck Blockbuster

Zack11190 @ Jan 27th 2009 8:26PM

The whole entire Lord of the Rings: Extended Edition trilogy is available for streaming. That sure does not suck.

Plus The Office

why not the LS2LS7? @ Jan 27th 2009 10:54PM

Zack11190:
No they aren't. I just checked.

The non-extended versions are available for streaming. The extended ones are not.

KobeBryunt @ Jan 27th 2009 6:41PM

Signed up for it too. Great service although it's definitely not for the hardcore film buff. If you're into documentaries and indie movies this is a great service.

Jcarpio @ Jan 27th 2009 7:21PM

But isn't that the types of movies that hardcore moviegoers watch?

kobebryunt @ Jan 27th 2009 8:00PM

Well you still have the option of renting physical movies from Netflix.

Zack11190 @ Jan 28th 2009 10:58AM

I just watched RotK Extended Edition the other day through Netflix.

Meh286 @ Jan 27th 2009 6:42PM

I think having Netflix on the Xbox is great. I just got done watching all the Heroes episodes on it.

Markez (Rubberband Banjo till Death) @ Jan 27th 2009 7:34PM

Anybody else notice how Ando has totally lost any semblance of a Japanese accent this last season?

Amanda @ Jan 27th 2009 6:45PM

I wish I had Netflix in Canada. My NXE feels so empty without it.

Rich H. @ Jan 27th 2009 7:32PM

Me too I wonder why doesn't zip.ca do this since it looks like a netflix clone already.

Intangible 360 @ Jan 27th 2009 7:50PM

I too wish Netflix would expand into Canada, the recession will likely scare them from doing so for another couple years though.

Amanda @ Jan 27th 2009 9:00PM

That's true. And our population is considerably smaller. Maybe that affects decisions.

Snap Count @ Jan 27th 2009 10:29PM

I'm almost willing to put money on it being the stupid CRTC up here, stalling the process (or whatever the acronym is). They are a bunch of old school assholes.

PSN: Aggie_CEO @ Jan 27th 2009 6:49PM

this dude stay saying things that simpletons can easily figure out.........

hell its 24+ Million Xbox 360's out there.......

for damn sure no one was gonna buy that Roku box Netflix offered......sure they sold some but damn if anyone with a good head on their shoulders bought one.......the TVs & Blu-ray players with Netflix baked in will help make NetFlix a DIAMOND mine......

laserboyjc @ Jan 27th 2009 6:50PM

I had Netflix a long time ago but stopped using it for couple of years...I watch more movies now that I'm married and I signed back up once the streaming came into effect. Granted, not ALL the movies on there are great, but there are some fairly new good movies/tv show/anime and a lot of older titles which I am now catching up with. No one here has mentioned it, but I think the quality is also outstanding, usually as good as DVD on my wireless connection which is not even that fast. All in all, good news, though I feel like a statistic since Patcher has me in those 200,000 that signed up after... :)