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Netflix breaks down PS3 deal

Q&A: VP Steve Swasey explains how video service works on the PS3; firmware update planned for 2010, will offer same options as PC and Xbox Live streaming.

After nearly a year of game-console exclusivity on the Xbox 360, Netflix branched out today. This morning, the company announced it was bringing its video streaming service to the PlayStation 3 starting next month.

PS3 owners will need a disc to access Netflix…for now.

PS3 owners will need a disc to access Netflix…for now.

Despite a different interface, the Netflix viewing experience will be essentially the same on the Xbox 360 and PS3, according to Steve Swasey, the company's vice president of corporate communication. However, accessing Netflix from the two consoles will differ. Whereas Netflix is integrated into the Xbox Live dashboard and firmware, accessing the service via the PS3 will require a Blu-ray disc, which contains the required software. (Those wishing to be sent a disc can reserve one on the Netflix site.)

To get more information on Netflix's future on gaming consoles, GameSpot caught up with Swasey, who revealed a few new things about how the service will work on the PS3.

GameSpot: I know you've indicated for several months now you're planning to expand your service onto all three consoles. How long did the PS3 deal take to arrange?

Steve Swasey: Well, Netflix desires to be on all the screens and all the platforms you can watch movies on. However, we don't disclose how long particular projects take. We are excited to announce that we are bringing Netflix to the PS3 in November.

GS: Is there an exact launch date?

SS: Not yet. Just November.

GS: So break down how the process works. You need a special Blu-ray disc to access the service, which you sign up for…

SS: Yeah, you just order a disc, and you'll get it generally the next day.

GS: You're already shipping them out?

SS: No, we'll be shipping them out in November. You keep that disc forever, and you plunk it in the tray and connect to the Internet. That gets you to your instant queue, and you're ready to watch it.

GS: Are there any plans for a firmware update that would add this functionality to the PS3's XrossMediaBar (XMB)?

SS: Yeah, actually we'll have that sometime next year.

GS: OK, so Netflix is obviously mail based, but you're focusing more and more on digital distribution. Are you going to offer a streaming-only subscription plan?

SS: No, it's bundled. You get the DVDs by mail and you get streaming too.

GS: And will the service still offer the same standard- and high-definition titles as it does on the PC and 360?

SS: It's the same thing on all the devices, whether it's a TV, Blu-ray disc player, or game console. The streaming functionality is the same.

GS: Now I know you guys announced earlier in the year that Netflix would be available on Internet-capable Bravia HDTVs. Will there be any kind of special Netflix functionality between the PS3 and such TVs?

SS: No, the streaming functionality goes directly to the devices. They're independent.

GS: In today's announcement, Netflix said it had 11.1 million subscribers and that over 9 million Americans own a PlayStation 3. What's the overlap between the two groups?

SS: I'm sure there is some, but we haven't disclosed that. We haven't broken that out.

GS: Are there any plans to have viewing parties, such as those available through Xbox Live, on the PS3?

SS: That's an Xbox initiative. You'd have to ask the folks at Sony about that [coming to the PS3].

GS: Now I know Sony also makes movies through its Sony Pictures arm. Will there be any kind of Sony-produced streaming content exclusive to the PS3 and Bravia?

SS: You'd have to talk to Sony about that.

GS: So this Sony deal will not affect your arrangement with Microsoft to stream movies on the Xbox 360, correct?

SS: No, we're continuing on the 360.

GS: And do you know how many 360 owners use Netflix currently?

SS: We know, but we don't break it out publically.

GS: Well, I guess the big advantage of streaming Netflix via the PS3 is you don't have to pay a premium membership cost for Xbox Live Gold. Do you know if Netflix will be available to Xbox Live Silver members in the future?

SS: That's a question you'd have to ask Microsoft. We just think they're both great platforms. [EDITOR'S NOTE: Microsoft has since confirmed Xbox Live Gold membership will still be mandatory to access Netflix on the 360.]

GS: So now, with you being on the 360 and PS3, the next question is--when will Netflix be coming to the Wii?

SS: It's a great platform, but there's nothing we've announced. We're continuing to grow both sides of the business, both DVD by mail and instant watching, and it's gratifying to see the market respond.

173 Comments

  • cpmethod2

    Posted Nov 2, 2009 8:12 am GMT

    The Netflix guy was kinda pushing of a lot of questions. "You have to ask them, you have to ask Sony, you have to ask Microsoft".... Kinda funny, bad interview...

  • solidine

    Posted Oct 29, 2009 12:33 am GMT

    @Cabal23

    I'm not sure what your talking about in your first two sentences, but MS is a powerhouse, I assume they have an eye out for every possibility that may occur and work to come up with as many ways as possible to profit from it.

    That being said, while Xbox (and moreso with 360) helped pave online into mainstreame gaming (and still does it best) they're entitled to charge, even if they shouldn't.
    With Sony catching up and offering it's own services, and the Wii offering a rudimentary though usable online experience, neither of which cost extra, MS must know this will either have to be their last gen of charging for online, or time to serioulsy change everything to continue to justify it.

  • Dynamic_Derek

    Posted Oct 28, 2009 4:59 pm GMT

    Wow, this guy certainly knows how to be vague when answering questions.

  • izmickey

    Posted Oct 28, 2009 12:56 pm GMT

    @jpsaply
    Yes, thank you for doing your homework and not ranting or bashing. I agree with everything you said dude.

  • rudolph228

    Posted Oct 28, 2009 12:45 pm GMT

    @Jpsaply

    Agreed. I think that you can definitely see a difference in even a 32" HDTV.

    @Cabal23

    You're taking it the wrong way. What I was trying to say is that just because Sony Pictures puts out movies onto XBL, doesn't mean that SCEA or any SCE will be working with M$. That's what I meant when I was talking to Ballz-on-fire.

  • jpsaply

    Posted Oct 28, 2009 11:12 am GMT

    @Autolycus
    Yea, I am wrong with the compression part. So sue me. But we were talking about comparison between DVD and Bluray formats. Not HD-DVD discs.
    If you want to get technical, goggle "Comparison of high definition optical disc formats". First link should bring you to the Wiki site. Nice table there comparing all formats.

  • Autolycus

    Posted Oct 28, 2009 10:56 am GMT

    @jpsaply Regarding your compression on Blu-Ray, you are flat out WRONG. It uses mpeg4, the EXACT same codec that HD-DVD USES/D as well. No single video source can display uncompressed 1080p video. one second, in 27Megabytes. so 1 minute would be 1.6GB, 1 hour would be 96 GB, guess what you just outfilled even the quad layer Blu-ray media and you didnt even finish the movie ...

  • Cabal23

    Posted Oct 28, 2009 9:34 am GMT

    @rudolph228

    Your theory only works if the company makes a profit. What if Company A and Company B are under Parent Company C. Company A loses money and doesn't make their quarterly goals, and Company B breaks even. You better believe that Parent Company C is affected by the loses of Company A and the lackluster profits of Company C. Companies don't just get to hold stakes in companies and not be affected by their negative or positive profits. T

  • Cabal23

    Posted Oct 28, 2009 9:28 am GMT

    @solidine
    It won't matter once the price drops. So in turn it will be worth it. You are talking about one of the biggest companies in the world. Do you think they haven't considered that?

  • jpsaply

    Posted Oct 28, 2009 8:45 am GMT

    @cl0ud
    @rudolph228

    Just to elaborate on rudolph228 coments about the comparison of DVD and Blu-ray. DVD format is compressed so tight to get all the information in such a small space (average 12 gigs), that inturn it has to lose some of its visual and sound quality. Bluray, however doesnt need much and sometimes no compression, therefore not having to suffer any visual and sound quality. Bluray can hold about 50 gigs of content.

    What about downloaded digital HD movies? They actually are compressed when leaving the server and then uncompressed when coming to your PS3, 360, PC, and devices alike. You do lose some quality, but still better then a DVD, but not always as good as coming directly from a bluray disc.

    Cloud, the reason you dont see a difference on your laptop, is because you are looking at a small screen. Its hard to see the difference. As Rudolph228 said, there will be a much larger difference on a HDTV. I have a 42" HDTV and for its first year I didnt have any HD players. When I bought the PS3 for its bluray functionality, its like the difference from night to day.

  • thekey

    Posted Oct 28, 2009 8:18 am GMT

    @jpsaply

    I did own both. Then I found out the PS3 was better. Then I didn't renew my XBL gold membership because I thought(Think it's a waste of money and time). The my well taken care of 3fixme RRODed 2wice. My 3rd console I thought was wasted space so I got rid of it. And now after seeing 360's new releases I know I made the better choice. PS3 is what a game console should be. And Netflix is just another addition to the robust puzzle. TREY 4 LIFE!

  • rudolph228

    Posted Oct 28, 2009 7:52 am GMT

    @Cl0ud

    The reason why Bluray is such a huge hit is because they are different from DVD's. They hold almost four times the amount of information that a DVD would hold. In turn, they can get better looking pictures, gameplay, and videos. I haven't heard of any other company, aside from Toshiba, doing a Bluray drive. I might be mistaking it with a Bluray Burner already built in. Either way, the quality of movies, games, and pictures on a Bluray is because of the amount of portable space that is available. I thought it was all a hype myself, until I got my PS3 and an HDTV. I'll say that it is probably one of the most advanced and beautiful forms of entertainment out there.

    I see where you're coming from with digital copies. They're sometimes cheaper and more convenient. Just give Bluray a try with a high quality HDTV. Once you go to that quality, it'll be hard to go back to standard digital.

  • Zoomer30

    Posted Oct 28, 2009 7:12 am GMT

    Oh so the disc thing is just a "work around" until they get the XMB firmware update. Good. One more thing the 360 fanbots cant crow about

    "Oh WE only need to press a button, you have to put in a disc"

    I see their lips move, but all I hear is blah blah blah XD

    PS3 FOREVER!!!! (well until the PS4 comes out)

  • jpsaply

    Posted Oct 28, 2009 6:56 am GMT

    I get the feeling the people that knock one console over the other, does not own both consoles. I, however do. They both have there strong points and there weak points. I am glad to see PS3 getting some great features, however there PSN store still needs work. The 360 has a great interface, but its weak point lacks HD bluray player.

    Some might say, "You Gold Live subscribers have to pay $50 a year." Well let me break it down for you.
    $50 divided by 12 months is $4.16 per month. Ouch! I dont think I can aford that. Give me a break people.

  • flyingteddy

    Posted Oct 28, 2009 5:52 am GMT

    oh that's one less thing 360s users can try to use to say XBL is better. PSN gets better all the time and it's still free, amazing!

  • Ehggsz

    Posted Oct 28, 2009 2:55 am GMT

    I don't have a Netflix account, but it's a nice option. However, what the PS3 really needs is a form of "party chat" and PS2 backwards compatibility and it will easily be the best console in my book. But until then...

  • solidine

    Posted Oct 28, 2009 1:28 am GMT

    Why do you need the disc? That seems like an odd way to go about it.

    Having said that, while I still don't like the PS3's online in comparison to 360's, the 360 won't be able to justify it's price forever.

  • gnbfd

    Posted Oct 27, 2009 7:37 pm GMT

    "We just think they're both great platforms."
    If only more people were like this

  • razorfett147

    Posted Oct 27, 2009 4:37 pm GMT

    Damnedapples pretty much sums up the situation quite nicely. But no matter how many times guys like us try to point out this fact.....vast sums of fanboys on here continue to think their console's company is made of gold and "cares" about them as gamers. Gimme a break. A gaming console is no different than any other electronic entertainment device. Get the one that suits you best, and stop acting like choosing one over the other somehow imparts some kind of magical karmic gift upon you.

  • XanderZane

    Posted Oct 27, 2009 3:46 pm GMT

    I'm not waiting my time with Netflix. I usually just go to the movies and watch it on the big screen. I could care less about streaming movies, especially over the internet. If you have a bad connection it completely ruins the viewing.

  • Cl0ud

    Posted Oct 27, 2009 3:30 pm GMT

    @rudolph228
    Blu-ray is on tons of laptops, by that i mean brands. i almost got one for my laptop(dell) but they're not different from dvds,to me plus they cost more than i am willing to pay. besides i prefer the digital option of watching movies

  • Kitty_Fields

    Posted Oct 27, 2009 3:16 pm GMT

    Now if only Canada would get a similar service...

    Not necessarily Netflix, but SOMEbody.

  • jessica73

    Posted Oct 27, 2009 3:03 pm GMT

    vf21x: It sucks for people who are just paying for Gold for Netflix (why? At that rate they could just get one of those standalone players for $100 if they want to watch on TV instead of PC) But since I'm already paying for LIVE, it's not something that matters to me.

  • HULKHANDSIV

    Posted Oct 27, 2009 2:50 pm GMT

    i preordered my bluray disc but i also have it on 360 XD

  • beekayjay

    Posted Oct 27, 2009 2:04 pm GMT

    @DamnedApples

    EXACTLY

  • mertron1 posted Oct 27, 2009 1:53 pm GMT (does not meet display criteria. sign in to show)

    mertron1

    Posted Oct 27, 2009 1:53 pm GMT (hide)

    a disc...hahahahaha...!!

  • DamnedApples

    Posted Oct 27, 2009 1:52 pm GMT

    FFS...all the fan-boys suckling on their console's teets. Let me put this nice and simple. Your living under one of the grandest self-delusions--one dwarfed only by your exceedingly massive egos and dogmatic loyalty--if you actually think that MS, Sony, or Nintendo give a **** about any of you or your disdain for other consoles. They'd all work together and screw over all their "fans" in an instant if it mean increased annual profits. Maybe that's greed--maybe it's not, but it's the way it works. Here's what the companies all see YOU as...now put on your REALITY goggles

    $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

    BTW you're only one of those figures.

  • parrot_of_adun

    Posted Oct 27, 2009 1:39 pm GMT

    @ChoadS

    Wish I had $40 on hand...

  • ChoadS

    Posted Oct 27, 2009 1:36 pm GMT

    @parrot_of_adun

    Check out PlayOn for Hulu it works with the PS3 and 360.
    http://www.themediamall.com/playon/
    I use it all the time.

  • xXZak-ataKXx

    Posted Oct 27, 2009 1:35 pm GMT

    @ResidentEvil777

    I guess if thats copy then MS is coping sony with blu ray

  • parrot_of_adun

    Posted Oct 27, 2009 1:32 pm GMT

    @ChoadS

    If it were '95 we'd be using like 150 diskettes.

    Anyway, now if Hulu would only do something like this...

  • ChoadS

    Posted Oct 27, 2009 1:11 pm GMT

    Is it 1995? A disk? I would love to use my PS3 to access Netflix but if I have to change out the disk every time then I'm just going to use my 360.

  • ResidnetEvil777 posted Oct 27, 2009 1:01 pm GMT (does not meet display criteria. sign in to show)

    ResidnetEvil777

    Posted Oct 27, 2009 1:01 pm GMT (hide)

    nice way to copy the 360..

  • Hvac0120

    Posted Oct 27, 2009 12:50 pm GMT

    "better", "superior" - these are subjective terms.

    PSN vs. XBL is a personal battle fought within your own mind and bound by your personal preferences, life-style, and resources.

    You cannot say one is truly "better" than the other to another person because it is only "better" to you or to a specific situation.

    Lag differs depending on where you are located, the time of day you are playing, the game you are playing, the service you are playing on, the people you are playing with/against, the servers you've connected to, the status of the ISP network... among many other things.

    Don't blame lag on the service. There are too many factors to generalize the root cause to either PSN or XBL (in nearly all cases).

    Both companies are competing, but they are also partially working towards a common goal -- gaming industry growth.
    _

  • rudolph228

    Posted Oct 27, 2009 12:45 pm GMT

    @power-fantastic

    Agreed.

  • rudolph228

    Posted Oct 27, 2009 12:40 pm GMT

    @Ballz_on_fire:

    Sony and Microsoft don't work together. That's ridiculous. Bluray is exclusively on Sony equipment. It wasn't until recently that they struck a deal with Toshiba in order to put them in other laptops besides their own. I do have to say that Sony Pictures, though it bears the name Sony, is a sister company. It's not the same as SCEA.

    Here's a live example...Seaworld is now owned by Blackstone Group (an investment firm). The same company, BG, owns over 50% of Universal Studios. Does that mean that what Seaworld does affects Universal? No. It works independently. The parent company simply takes the profit. Yet still they have the same parent company. All in all, it's about making a steady positive cash flow. If Sony Pictures wants to make money by selling and renting their movies on XBOX Live Marketplace, they can. They're selling licenses to enjoy your movie privately. You don't own the movie, you own the license to view it privately.

  • power-fantastic

    Posted Oct 27, 2009 12:23 pm GMT

    @ Toddze You are right about them being competitors. If you believe any different your just naive. Having never owned a 360 I will say that all these people who own and love them can't be wrong. After all its there choice It is ok to pay for their service if you want it. Me personally I would prob pay for PSN if they made us (being a Sony hack). But it is rather nice to have it for free (considering FiOS is $60 DTV is $100.00 (not to mention NFL & NBA packages), Cable is $10 (basic for the kiddies rooms). So hey I choose to pay for cable and DTV as its what I want. ***************************************************************************************
    Its funny seeing people defend the xbox's honor. I mean 1st the PS3 cost way to much, then it was they don't have enough exclusive titles, then it was their online service doesn't compare but when its all added up the xbox cost as much as an original relase $600 PS3 (probably more when you count up the folks who had to replace their units after the eventual RROD failure), exclusive titles are leaning towards the PS3 and the online is more than likely comparable.

    Looking at them today it really isn't hard to see which one is the better buy(60 gig luanch day PS3 owner). Also There is no good answer for paying for that broken as crap box after the inevitable 2/3/4/5/6 RROD's you will get. Nothing like a console wars thread to help through a rainy east coast day.

  • jtthegame316

    Posted Oct 27, 2009 12:14 pm GMT

    meh netflex its not in the uk anyway

  • toddze

    Posted Oct 27, 2009 12:02 pm GMT

    Your right BR is an effort of several companies and M$ was not one of them at the start. MS was involved with HD-DVD with other companies in which it was BR vs. HD-DVD. We know where Hd dvd went.

  • mamkem6

    Posted Oct 27, 2009 11:58 am GMT

    I assume that this is not available for Croatia cause we still don't have PSN Store. I think I will still have to pretend like I'm US citizen to access PSN Store or this Netafix. It is too much hassle to buy something from the store and I can't imagine how it will be to use Netafix
    I'll skip this one.

  • toddze

    Posted Oct 27, 2009 11:58 am GMT

    oh and ballz this is my only account, but you wont believe that.

  • BaLLz_ON_FiRE

    Posted Oct 27, 2009 11:58 am GMT

    Sony and MS work together in different ways.

    They're not giving money to the games division if they're using Bluray, and Bluray is far more than a mere Sony device but a conglomerate of different companies including Microsoft.

    We see Sony Laptops with Windows and Sony Pictures releases on the XboxLive download service, for an example.

  • toddze

    Posted Oct 27, 2009 11:52 am GMT

    Ballz dude you need to grow up and learn some basic economics. Sony and MS are in direct competition. They are competitors, just like anything else in the real world from fast food chains, to grocery stores. They are in competition for our business.

  • daabulls23

    Posted Oct 27, 2009 11:50 am GMT

    Netflix straight from the XMB would be awesome.

  • BaLLz_ON_FiRE

    Posted Oct 27, 2009 11:46 am GMT

    Different accounts same person.

    Now thats sad...

    I apologize if I got so much under your skin it's just a video console.

    My part in this console war... do you hear yourself you take this sh1t way to seriously.

    Unlike you I'm trying to show to the more normal folks that both 360 and Ps3 are Great consoles.

    You dish one and make the other look like is the only viable option.

    Normal peoples choose whatever they like from personal taste not because a kid tells them to on GameSpot.

    This competition between Microsoft and Sony exist entierly in your head.

  • Fumpa

    Posted Oct 27, 2009 11:31 am GMT

    PS3 had to wait a year for this. Now all PS3 owners will get it for free and 360 owners will still need to be Gold members. Hopefully MS will play catch up, like Sony just did, and follow Sony's lead by offering this service for free (to Silver members).

  • dkslade

    Posted Oct 27, 2009 11:27 am GMT

    netflix is terrible, all the NEW releases are not available to watch? but you can get them in the mail.8 bucks a month for movies that are way outdated is not good. i did the trial and was not impressed. now all i get is come back to netflix.

  • toddze

    Posted Oct 27, 2009 11:19 am GMT

    Ballz_on_fire your always in the news sections defending/promoting your toy, partaking in the console war. So next time dont try to be the better person when you stoop just as low as everyone else. You should take your own advise and go play with your toy.

  • fps_d0minat0r

    Posted Oct 27, 2009 11:05 am GMT

    @ BladeTrinity114

    not 100% of players lag on gears of war.

    however there are tons of players that do..........if you were unaware of the uproar that caused then its not my fault.

    theres tons of vids on utube about it too, if you think im lying then i dont care, my reply was to someone else, not you.

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