While tablets might be a revolution for everyone else, Netflix CEO Reed Hastings thinks they’re a bore. Where it’s really at? The Apple TV.
During his interview with Kara Swisher at All Thing Digital’s D9 Conference, Hastings downplayed the importance of the iPad and iPhone for streaming video companies like Netflix.
“Having a TV is the most important thing for video, as opposed to music, which works well on mobile,” Hastings said. “In the coming years, we’ll be on a lot of web TV app stores.”
But what about iPad, Swinger asked. Hastings’ response:
“Meh. Tablets are not a revolution. The Apple TV is more important to us than the iPad. The big deal for us is Internet connected TVs.”
While I love both Netflix and my iPad, I have to say, I think he’s right: while it’s nice to be able to watch video on my iPad, the form factor — which requires me to actively hold the tablet upright — just isn’t as satisfying as a big HDTV.
I found these comments really interesting, because while we Apple fans tend to get all rubbery in the knees over the iPhone and iPad, there’s another, quieter revolution happening across America, where the Apple TV is changing the way millions of Americans use their television, with almost no one noticing.
What do you think? Is Hastings right about streaming video on mobile devices? If so, what do you think that means for iCloud?
[via MacStories]
John Brownlee is a writer for Fast Company, and a contributing writer here at CoM. He has also written for Wired, Playboy, Boing Boing, Popular Mechanics, VentureBeat, and Gizmodo. He lives in Boston with his wife and two parakeets. You can follow him here on Twitter.
90 responses to “Netflix CEO: The iPad’s Not A Revolution, The Apple TV Is”
the iPad sits up quite nice on its own or on the book rack of my exercise bike while I’m working out. Yeah, for ME, the iPad IS a big deal for streaming video.
“there’s another, quieter revolution happening across America, where the Apple TV is changing the way millions of Americans use their television, with almost no one noticing”
Glad you wrote it the way you did, because the revolution certainly isn’t happening anywhere else. No TV rentals. No baseball. No Netflix (or equivalent). In the UK, it’s insane that there’s no iPlayer on Apple TV, no 4OD and no LoveFilm. And I can’t really see this changing any time soon.
Kara Swisher, not Swinger
Holding it is the reason I didn’t go for iPad 2 — the SmartCover isn’t so smart as the original, Apple cover, for holding the thing in bed or on the couch.
SmartCover: Kind of gimmicky to me. Too smart for its own britches.I have an AppleTV but I more often use the iPad for Netflix. Go figure.
Can’t use my Apple TV on a plane or a bus. :(
Agreed. I :heart: my Apple TV 100X more than the iPad. For 99.00 it’s an amazing piece of technology and certainly revolutionized the way I watch TV.
I just love it when people make blanket statements. Of course, if you’re sitting down and happen to have a nice big HDTV in front of you and an iPad sitting next to you; you’re going to watch the movie on the HDTV. Duh.
There’s no reason to diss the iPad and say it’s not a revolution – it has it’s proper place for watching videos. iPad is a revolution in many, many markets that have nothing at all to do with Netflix.
OK?
iPad and Apple TV both are revolution products. It’s depend on your life style. That is no right or wrong way to use the product. If you are often going outdoor iPad is the best for mobile use. If you are often stay home and have a big HDTV Apple TV is the best for you. But if you are using both, that’s much more fun and useful.
I’d say he’s right, but he’s talking specifically about viewing movies and TV. The iPad is a revolution for computing, but for video, the Apple TV and units like the Roku, Google TV, and Boxee Box are all quietly making headway in the living room. I work at Netflix customer service and I can’t tell you how many folks tell me they cancelled cable or satellite TV and are now just using Netflix, Hulu, iTunes, Vudu, and/or Redbox now. And they’re saving a lot of money…
When your Apple TV has a fast internet connection and a ton of content to select from, there’s no need to go channel surfing any more, and pay $65 per month for the privilege.
I’m looking forward to getting an iPad for reading and maybe working with iWork. But I love my AppleTV for video. I love watching pretty much whatever I want, whenever I want. My kids haven’t complained about not having cable, and my husband has discovered old British comedy shows like Red Dwarf and Hyperdrive (with Nick Frost!). We bought a couple seasons of our favorite shows from iTunes, but we subsist primarily on Netflix, and I’m sold.
I have an internet-connected Samsung LED TV. It’s wonderful but the Netflix app is not nearly as easy to use as the same app on Apple TV. Instead of using Netflix on Samsung, I much prefer the ATV version. Nobody can do a better UI than Apple.
The iPad not being interesting to Netflix does not make it any less of a revolution.
I think he’s correct but Apple needs to do a much better job of marketing the Apple TV and promoting what it can do. Just allow Hulu+ and I’ll be a happy man!
ATV is not a complete solution for majority of the people.
ipad however IS a complete solution for many people.
ATV is just an add on so that people can do more stuff w/ their tv or possibly replace some ht pc.
ipad is even bringing people who are not interested in computer — besides many other obvious — into computing world.
Go figure.
Of course Reed Hastings is going to say this. He wants to maintain good relations with Apple, an important partner. There have even been rumors about Reed Hastings as a potential candidate for the Apple CEO job if Steve Jobs leaves. An acquisition of Netflix by Apple would make a lot of strategic sense.
To answer your question, if I am watching something by myself the tablet or laptop is fine. Many times I do not want to be stuck in the living room so these portable devices let me bring the content with me. If I have guests, the big screen TV makes more sense.
I couldn’t agree more with Hastings: for Netflix, the iPad is nothing compared to the implications of the Apple TV. I love my Apple TV, the instant streaming of HD content directly to my HDTV is beautifully innovative and I can’t wait to see where Apple takes the TV.
This isn’t to say that the iPad ISN’T a revolution, it might be, just not to Netflix.
I think the real key is to understand Reed’s perspective here. He’s not dissing the iPad per se, but as someone who works in the business, the biggest money is attached to the biggest screen. Doesn’t mean iOS devices won’t be a growing factor, but the upside is greater for TV-connected devices where usage is more frequent and more predictable. Trust me, Reed knows where his bread is buttered. I bet they are seeing way more streams per device on ATV than on iPads. If those types of devices continue growing, Netflix becomes the new Comcast.
again its dependent on the user, just because they say it isnt a revloution doesnt mean it aint
It seems you have your knickers in a twist over this interviewer, Brownlee.
Her name is Swisher not Swinger, bozoid.
A Freudian slip and now I’ve shattered your daytime fantasy. Awwww.
Sorry about that.
Hastings wouldn’t have said this if the data didn’t back it up. If subscribers were really watching on their mobile devices in droves he’d be all over it. Inside the gadget echo chamber its easy to think that people are abandoning their TV’s in droves to watch Netflix on their iPads. But mainstream America still loves their TV’s. On the TV is the most important place for Netflix to be right now.
I love my iPad and my iPhone. I am not interested in watching Netflix on them when we have a 50″ TV in the living room with a good sound system. And the Apple TV is by far the best Netflix interface I’ve used. The experience on the Roku, Xbox, and the 3 blu-ray players I’ve had over the years all pale in comparison.
Apple TV is great once it’s jailbroken to access all media on your harddrive plus on-line content providers such as Hulu and others. Still the little black puck could use 1080p
I think the implication is that the iPad is not a revolution for mainstream TV and movie watching. The context of his comment seems to be in regard to streaming video, not general computing.
this post gave me WOOD. GOOOOOGLY WOOD!
I actually watch less TV since I purchased my iPad 2. I use the Apple TV mostly for streaming audio and movies from my main computer to my bedroom. I would most likely watch Netflix on my big TV rather than my iPad 2 if I am home. So the internet TV is a focal point for Netflix, but I believe they should also keep their eyes on the prize. The numbers don’t lie. The iPad 2 is definitely a revolution. It’s a widely used platform and still growing at a tremendous rate. Its like the saying, “The best camera is the one you have with you all the time.” You cant take your 60 inch TV with you.
All the movies I stream from Netflix look great despite the fact that not all movies from Netflix are HD. Therefore, until Netflix streams all content as HD I think the iPad is the way to go. So fuck you…
Haba haba habecker..duh…
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I do the same thing. I actually have the Samsung LED Smart TV and get a much better HD picture using the AppleTV than the Sammy. I prefer it over the PS3 as well.
I’m hoping with iOS 5 and the next AppleTV rev this fall that Apple will unlock the full potential of the AppleTV. Additional content (including streaming everything from iCloud so your computer doesn’t have to be on and on the same network). App Store and full remote capabilities for everything like that from your iPhone or iPod touch. The AppleTV could be a combination standalone/accessary. Talk about creating another product category. But until then, it’s just another sleeper (maybe “sleeper hit”).
The Apple TV passed up the iPad in terms of streams back at the 2 million mark:
http://news.cnet.com/8301-1350…
Disagree. We have both ATV and iPad in our house. I’m surprised, but I’d say twice as many Netflix movies are being watched on iPad than the ATV. Pick your location (e.g. Watch in bed) seems to be more important than the big screen with home theatre.
Bingo. Regardless of what our personal focus groups tell us, people still want to watch together on a big screen.
Wow, is profanity really necessary. Sure does turn me off.
So very true !
Roku boxes destroy AppleTV.
We have an iPad, 2 iPhones, 1 Macbook Pro, and a 27″ iMac in our household. And where do we stream Netflix, podcasts and rentals? On an Apple TV connected to big flat panel TV.
Well, I love certain parts of my Apple TV. The Netflix implementation is indeed to die for. Apple rentals (and their trailers) take forever to start streaming… even when Netflix HD streams and HD podcasts start right away. The Apple support forums are littered with people having the same experience.
It’s really about using the largest screen you have access to at any given time. TV first, then tablet/PC then mobile. I love my Apple TV and agree that it has revolutionized the way I consume content. With everything I want to watch online (Netflix, MLB.tv, etc.) it’s completely unnecessary to subscribe to pay TV or even have a DVR.
Plus, purchasing or streaming content from Netflix and iTunes makes it easy to take my content with me to watch – bus, airplane, hotel room – what I want to see, when I want to see it. That’s what it’s all about.
Agreed totally. I think the reason is that Netflix uses an adaptive bitrate streaming server, while Apple uses a more conventional (and less costly) progressive download model. The files are very high quality, so they take a bit to get going, having to download enough so that you don’t get crazy buffering.
Both ways have strengths/weaknesses, but I betcha Apple will be kicking it up a notch with that new data center. Right now, they may be victims of their own success.
Speaking of which, can anybody guess what the USB port on the AppleTV is for? A webcam perhaps? Something to enable Skype and/or FaceTime calls? Hopefully when Apple enables an AppleTV AppStore, we will all love much more our iOS TV device.
Cheers!
I certainly hope so. But I wonder how many people they have put off from trying rentals again with their slow as molasses system? Seriously, renting a 45 minute show and being told “ready in 235 minutes” is just as bad if not worse than the old Apple TV. So much for “instant streaming”.
I’ve been waiting for the real bombshell to be dropped at wwdc this year: the app store for atv.
With that announcement, the circle will be complete and all apple devices will have their store.
We have one of everything in the house and the PS3 is used exclusively for movie watching. Flawless HD Netflix, 1080p streaming from the PC, and the Sony rental store which seems pretty complete. Plus a bluray drive, for those interesting christmas gift boxsets.
I purchased an AppleTV for the Airplay though.
I’d really like an honest to goodness Mac App for Netflix. I want to use the Apple Remote, so their website is out of the question. And Plex and Boxee are super buggy. I want an iOS or ATV flavored app for Mac (since I have three Mac Mini powered HTPCs).
With AppleTV & Netflix, I haven’t had to suffer through a single product commercial or political ad in 2 years. What more can you ask for?
I agree. The iPad is a revolution in it’s own category but so is the Apple TV in the category it’s meant for. Bottom line is someone is going to make some addon that allows you to use your iPad like a TV but it’s not the same in screen size.