Pachter: Netflix on Wii won't matter as much as on other consoles

by Alexander Sliwinski on Jan 13th 2010 6:40PM

Wedbush Morgan analyst Michael Pachter doesn't think the announcement of Netflix streaming on Wii is that big of a deal in growing the rental service's customer base. Pachter's perspective is that "fewer than 20 percent" of the US's 26 million Wii owners are connected to the internet, which is a necessary component to stream movies through the service. In comparison, he believes over 75 percent of Xbox 360 and PS3 users are caught up in the internets.

IndustryGamers reports that Pachter expects "some traction" from the Wii announcement, but that it won't "jump start Netflix activations." He believes the Nintendo console's installed base will "embrace the Netflix service only gradually." With so many consumer electronics receiving the Netflix streaming service, Pachter does believe it'll "allow Netflix to maintain its prior pace of subscriber additions as new customer additions from the Xbox 360 installed base begin to slow."

Source

Tags: michael-pachter, netflix, Nintendo, pachter, Wii

Reader Comments (94)

Which is the dated tech and which is the new, I ask?

Badum-pish!

I'd be willing to bet it's a Wii Optical Disc, and not a DVD.

You know, so it'd be all usable and such.

Nintendo Optical Discs (both GameCube and Wii) ARE DVDs, just not made exactly the same way as typical DVD media (fun fact: modded Wiis can play media off of [gasp] standard DVD±Rs!). The Wii is more than capable of playing DVDs, it just doesn't play DVD movies, likely due to licensing.

Forget not the Panasonic Q, a special version of GameCube released by Panasonic that played normal DVD movies.

This is right.

As Nintendo explained when they launched the GameCube, one of the reasons they didn't go with normal sized DVD's (to enable DVD playback) was that they didn't want to pay the DVD Consortium fee for that. The Wii is the same deal. Both systems can decode DVD's (in fact, the GameCube discs were just mini-DVD's with a little extra encryption) and with a homebrew DVD player, you can pop a DVD into the Wii, and play it fine.

There was and still is a rumor of a DVD player-enabled Wii in the future. Nintendo says they can't issue a Firmware upgrade to change that, and that new hardware would be needed, but from the homebrew stuff we see that is false. They just need to recoup the $5 per system for the licensing fee, and I don't think they want to make people think they are charging $5 just for a Firmware update.

@Drakkenfyre

Easy solution: Release it as a channel you have to pay for, like the internet channel was for awhile.

Also, there are ways of getting around the need to pay for the license. i know a lot of PC programs use libdvdcss to get around that. It's in VLC, one of the most popular PC media players and many others. Either the group/company that owns the license just doesn't care, or it isn't illegal using that method.

That's what people were suggesting, it's Nintendo who said it couldn't be implemented even if it was a Firmware upgrade. Obviously, this is false since homebrew users can play DVD's.

I suspect it's Nintendo just not wanting to admit the system can play DVD's, and would rather just put out new hardware, and slapping an extra $5 on it. Why balk if you put out a new, "updated" system, and people will rebuy it?

Here's a way to increase NETFLIX subscriber base.....BRING IT TO CANADA!!!!!

Stupid CRTC...

I also hear you don't get Hulu. Sucks to be Canadia...

Its a good trade off for medical I think

Okay. first? That's actually cool art.
Second? You fail.

But children and old people don't care about streaming movies!

I agree with Larry!

It's a miracle!

Get a room you two...

and then invite me so we can start some good LAN matches. What? Is that not what guys do when told to 'get a room'?

But what game? Starcraft? CoD4? Halo?

counter-strike vanilla you freakin noob.

The original? Or CS: Source?

I just said vanilla.

Well I could agree to Halo, but I never really got into Star Craft or CoD games. Never tried Counter Strike.

Though I'd probably lose, there's always Command & Conquer: Tiberian Sun. It's still one of my all time favorite PC games. And whenever i get tired of that I can take a personal break and watch myself get raped in X-Com: Terror From The Deep.

My parent's Wii wouldn't have been hooked up to the internet if it wasn't for me going home and setting it up myself. Other than that, I think my younger siblings didn't even know online gaming existed on Wii. *From PS3 Owner! ;)

STOP IT WITH THE PATCHER POSTS.

NOBODY CARES.

I care.

Misquoted above: "fewer than 20 percent" of the US's 26 million Wii owners are connected to the internet"

The actual quote from Pachter reads: "In our view, only a small percentage (likely fewer than 20%) of Wii owners HAVE CONNECTED THEIR CONSOLES" (emphasis mine) "to the Internet, which is required to activate the Netflix service...".

The way it was quoted on joystiq made it sound like only 20% of the people who own the Wii have internet access. When I first read that, I was thinking total BS!
However, I have no problem w/ him stating that fewer than 20% of Wiis themselves are connected to the internet. Most people that I know who have a Wii either don't know that it can connect to the internet, or don't care. But they ALL have internet access.

Me, mine has been connected since the day I got it. And I think Netflix on Wii is awesome. Move the Wii to the bedroom, and I've finally got a Netflix player in there too w/o having to drop more $$!
I don't need the Wii in the living room anyhow. Leave the big TV for the big consoles. :)

I agree.

There's just not as much motivation to put the Wii online like there is with 360 and PS3. Something like Netflix streaming coming out will likely motivate more of the owners to put them online, but I still don't think we'll see the online rate skyrocket.

This is exactly what's wrong with hanging on Pachter's words. It's his job, but even as a 'nobody' I feel like I have a better handle on this crap than he does.

I'm a Wii-only owner, I'm very excited about this, and I have a...*gasp*...regular TV. I'll bother with HD when the prices drop dramatically, and when my current TV breaks. Until then...SD all the way. I've watched TV in SD for a quarter of a century, and somehow, I've survived and I've been no less entertained.

Also, my dad is an old person and he watches instant Netflix movies all the time.

I'm so sorry. What prices would be reasonable? You know you can get an HDTV now for the cost of a PS3. They aren't all $1,500 bucks. I can promise you that once you go HD you'll never go back to SD ... it's just not detailed enough and it makes my eyes bleed.

You need an optometrist more than an HDTV, then.

Don't get me wrong, I see the difference, I just don't think it's worth it. It's not as life-changing as everyone claims. I'm also not going to buy the cheapest HDTV on the market, because I actually want it to last a while. I suppose if you're going to ditch it in a year for the next overhyped technology, then it doesn't matter, but for me, I expect to be able to use a TV for at least 10-15 years.

Looks like 3D will be the next cycle for rebuying every movie you own.

And I liked House better before I could see every pore on Olivia Wilde's massive forehead. That thing just jumps out of the screen at you in HD. She's hotter in SD.

My parents happen to have a Netflix account, and they let me use their login info to access the streaming catalog on my 360, and...wow. It's pretty bad. I mean, you'd expect to see at least a FEW new-ish movies, but they just threw some of the most undesirable crap that almost no one would want to watch. For god's sake, they couldn't even get the ORIGINAL 3 Ninjas!

Honestly, if you get a Netflix account specifically to get use out of this very touted feature, then you're most likely going to be very disappointed.

Every person I know that has their Wii's wireless connection actually configured also has their Wii softmodded. (they can already stream media and play various audio/video files)

That ain't even close to being Netflix but it requires no disc and no monthly fee.

Screw him. I happen to be a Wii only owner right now, because my 360 died back in November, and I don't have the money to replace it right now, nor will I in the near future. Therefore, this is great for me.

No money to fix the 360 but money to have a netflix subscription? Interesting. I call BS though.

Patcher is also the guy that said no one has a PC more powerful than the PS3. The man is a moron.

It matters to me Pachter, you douchebag. I'm a Wii-only owner with a standard Def tv and I'm sick of watching Netflix on my laptop screen.

Ok so there are like a few hundred of you neanderthals still on SD and only with a Wii. In the grand scheme of things its irrelevant.

Geez johnnynumber5, troll much?

Mike to Pachter: No shit Sherlock. Hey, look at the bright side. At least Nintendo doesn't have to worry about dvd playback support.

@marklar
there is actually a good amount of shows worth watching on netflix (the office, lost, desperate housewives) and mostly c list movies and then some better movies worth watching from starz play.

reply fail =/

I'm excited!!! I'll be able to stream Netflix using the Wii!!!! The only reason I don't using my 360 is because I don't use Gold access and Microsoft needs to learn that those of us who don't want Gold access can now get our Netflix elsewhere....
Wise up Microsoft....your gold access is going to start hurting you....

I'm pretty interested in how he interface turns out. We know the streaming quality will be inferior. That's guaranteed. In testing the PS3 vs. the 360 interface, the 360 is quite snappier. The quality seems identical, but if I have my druthers, I'd use the 360 for its speed and recommendations.

Well it really all depends on whether or not you're using a wireless or wired connection. In my case I purchased an adapter that allowed me to use a wired connection, though I'm not really sure how many other people do that (and own a Wii).

Let's get this straight, the reason Wii users won't be streaming Netflix is not because we are not hooked up to the internet, it is because the movies will no be in HD.

Those of you who say SD is good enough, need to get an HDTV and take a look, because if you watch HDTV you know that SD is far from adequate.

My internet at school isn't fast enough for HD anyway... So this is a great way to let my watch on my TV versus my tiny laptop.

I have to disagree with Pachter on this one.

Netflix on the Wii will slow the adoption of HD consoles by Wii owners. Gamers are happy to clog their lives with hardware, but Joe Average is not, because his wife doesn't want his collection in the living room. However his wife will be happy to watch Netflix on the same device she does Wii Fit, and I think if Nintendo spins this right, we will see more Wiis connected to the Internet.

Everyone talks about the Internet Connectivity rate diffs between the 360 and the Wii, but 20% of Wiis connected to the internet is a lot of hardware, probably at parity (or more) with the 360 (someone must have this data somewhere). With built-in Wireless connectivity on the Wii, Nintendo just needs to step up consumer education to become the set-top box of choice among consumers--they are already the gaming console of choice this gen, which has got to keep Sony awake at night (damn BluRay).

Previous 50 Comments

Pachter: Netflix on Wii won't matter as much as on other consoles

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