Netflix is announcing plans to offer users unlimited access to its streaming video service. They might as well do everything they can do to entice customers to stay with them as viewing options continue to increase, but this won’t help their bottom line any.
Netflix has a paltry 5.6% profit margin and while they’ve been locked in a death battle with Blockbuster their greatest competition comes from near instant viewing options offered by cable on-demand, and companies like Amazon and Apple.
Apple will reportedly announce an iTunes movie rental service at MacWorld this week as well as an update to make the downloads accessible via AppleTV. It will be interesting to see how Apple’s FairPlay DRM figures in, Netflix use of Microsoft DRM has severely limited its offering to date.