So news has it that NetFlix is distributing movies via their new Watch It Now service. In light of this, I think I should go ahead and air my predictions.

It’s been rumored that NetFlix will eventually launch their own set-top box. This would be rather clunky as the last thing I need is a TiVO, a content-provider (Comcast or AT&T) set-top DVR, as well as a NetFlix box (assuming I don’t also want an AppleTV). It would also be extremely expensive for NetFlix to invest in their own hardware development that would most likely lag behind the competition. It would make much more sense to NetFlix if they banded with an already prominent STB provider and offered their service through it.

Content-providers would be in direct competition with their In-Demand services and are not likely to ditch them in favor of NetFlix. The only way the content-providers would be willing to co-operate is if they were desperate to cut corners. Apple is not likely to partner unless they control the environment to the fullest extent as Apple believes in this dogma that all electronics should be treated as appliances. That leaves TiVO. What a combination. TiVO lacks on-demand content and would probably be elated to off-load the content distribution to another provider. This is something that could be added relatively easy to their series 3 boxes.

So Scobble, I am afraid you are wrong, NetFlix is only beginning to fight. Only time will tell if this prediction comes true.