Netflix Streams To PS3 Despite Microsoft’s Exclusivity Deal

10/28/2009 Written by Devon Simpson

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As many heard the other day Netflix will finally be streaming to the PS3 gaming console. What many didn’t hear is that streaming Netflix to the PS3 wont be done through an application on the XMB menu system, but instead will be using  BD Live through a special Blu-Ray Disc to stream content. The interesting part is that this may be due to a loophole in Microsoft’s Netflix exclusivity deal. Hit the jump for more details…

Yes Netflix will be coming to the PS3, but how when Microsoft have claimed they have exclusivity? Michael Pachter of Wedbush Securities, everyone’s favorite video game industry analyst, claims that this workaround avoids violating Netflix and Microsoft’s exclusivity deal by streaming Netflix to the PS3 via BD Live.

Gamespot and Joystiq have contacted Netflix for more specifics and here are the main details:

  • The PS3 application was developed internally by Netflix, with the help of the Sony team.
  • The Netflix disc has to be inserted every time to access the Netflix service. It can’t be installed on the PS3 hard drive.
  • You keep the disc forever.
  • A disc-based streaming application was used because it was the fastest and easiest way to implement streaming on the PS3.
  • Late 2010, an embedded solution is expected for the PS3 via a system software update slated for release through the PlayStation Network.
  • No special features will be available for streaming.
  • There is no difference between the content catalog available on PS3 versus Xbox 360 and the PC, including high definition.
  • No streaming-only subscription plan will be offered.
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29 Responses to “Netflix Streams To PS3 Despite Microsoft’s Exclusivity Deal”

  1. smokey_vols Says:

    It would seem that Microsoft have underestimated Sony’s sneakiness.

  2. skullking123 Says:

    @smokey_vols

    lol thats for sure

  3. Unimush Says:

    yeah for loopholes!

  4. MakaiOokami Says:

    Thank you for answering that question. I originally thought it was a mistake made and that the feature was actually being planned for Sony t.v.s and the disk option was intriguing since I thought it might have to do with some sort of loophole.

    It’s just funny though. Microsoft when will you learn that you can not buy success. Paying for an exclusivity deal merely means that you’re paying for the company to figure out a way to get it on a Sony platform.

    Of course I hope Microsoft never learns about that fact. Quite frankly Sony’s money that was used to develop the Cell processor helped fund the processor that microsoft uses, so… it’s only fair that Microsoft be used to fund PS3 content as well.

  5. andrew Says:

    ditto to all above. the only lame part is for a long time we have to use a disk. but its a small price to pay because we dont have to shelll out any more money then the netfilx fee unlike microsoft that requires you to have a gold membership which cost 60 a year or 5 a month plus netfilx fee that 120 (netfilx 10 a month) plus 60 dollars a year (XBL). GRAND TOTAL OF 180 A YEAR OUCH

    Kyle says

    By next year, subscribers won’t need to insert a disc…Which is great!

  6. knucklessg1 Says:

    Now this is why you gotta love Sony. Seriously, they are smart. I would have never figured this out!!!!!

  7. JohnnyTruant5 Says:

    @andrew
    Are you under the impression 180$ a year is a lot of money? You can pay 300 for the console, 1000 for the tv, another couple hundred on surround sound and games and any extras all in one pop, but the second they charge you one of those amounts over 365 days, that’s 12 paychecks, they’re fucked?

  8. wtGp Says:

    @andrew
    is that really an inconvenience in putting in a disc? l like what one of the Netflix representatives said “You put in the disc like any other game so what’s the problem”

  9. Nosferatu King Says:

    This is hilarious. If Microsoft was doing this, they would be labeled thieves, cowards, and pieces of ****. Sony does it, and they’re amazing, intelligent, and should be applauded.

    I love my PS3, but the double standard has got to stop.

  10. wtGp Says:

    @Nosferatu King
    that’s becuz M$ has been trying to keep Netflix all to themselves.

    You know exclusivity is good at times but there are times when it’s just ridiculous and should be enjoyed everyone

  11. megs1120 Says:

    I’ll need to have a Netflix account added to my gift list! :)

  12. TheHater Says:

    The loophole around MS exclusivity is the disk. They said they already have the software read to stream on the PS3, but will not be implemented until next year. I am guessing that MS has a software exclusivity deal with netflix until next fall or whatever. The disk was the only loophole they could find at the moment to stream netflix on the PS3. The also could have use the PS3 web browser.

  13. skullking123 Says:

    @TheHater

    You have a good point about the web browser, but i’m not sure if it can handle HD videos.

  14. giese095 Says:

    everyone should ease up on Andrew, maybe to him $180 in a year is a lot of money…just saying don’t assume you know everyone else’s financial condition…anyway I would have loved to see the reaction at Microsoft when they heard out about Netflix and Sony basically screwing them over. (sure it’s legal, but you know you wouldn’t like it if it happened to you). Anyway, I probably won’t even use this service just because the Netflix streaming library really isn’t that great. I’ve had a Netflix subscription for probably 3 years now and have only watched one streaming movie on my computer. I’m sure this would be great for some people, just not for me.

  15. JohnnyTruant5 Says:

    @giese
    He likely pays more for internet. And if it’s his parent’s that pay for those things, then 180 in the span of a year is nothing for them.

  16. kirobz Says:

    @johnny i think what the poor guy meant is the when people want to integrate netflix on their PS3, they won’t need to pay for extra subscription. Free is always good, right?

    We all know that this would happen. MS exclusives are only timed. What a way to spend their money. lol.

  17. jaewest304 Says:

    $180 a year isnt much money but when u factor in $50 of that being paid soley in order to be able to play online then there is $50 wasted! I have a 360 and it was the biggest waste of $ EVER. Live isnt better then PSN ( @ least not better to the tune of $50 a year!!) and to those that dont have Netflix…a warning. The streaming quality is shit on HDTVs. Reason being that the video that is being streamed is compressed below standard def and that leads to a shitty picture on a large HDTV (my 52″ Samsung hates Netflix streaming). It looks good on smaller screens like laptop and desktop screens. This was my experience via my 360 and my Blu Ray player that has Netflix and Blockbuster built in. In short Netflix needs HD and sucks without it

  18. Richy2k9 Says:

    hello …

    sorry for repeating myself everywhere!

    SONY Please Make an ANOTHER COUNTRIES PSN .. so that all other smaller markets have their chances with their PS3 on the PS Store, with compatibility with all other countries credit cards & not accepting those from existing zones!

    it’s about time that some people outside the bigger zones get their part & most of the time there are no regulations about contents, so please give us everything & in US$ is OK while accepting our Credit Card or Paypal accounts !!!

    i may then get NETFLIX, VIDZONE, PLAYTV, etc …

    sorry … but had to !

    cheers!

  19. solo013 Says:

    I for one can’t wait for netflix to hit the ps3.

  20. nemo20000 Says:

    As I wrote elsewhere: “Console exclusivity? Yes, yes, sign here, give us the money. Of course we may do something for BluRay players down the road… you’re not interested in BluRay are you Microsoft? No we didn’t think so. Thanks very much.”

    Not much to do with Sony though, this is Netflix resourcefulness. And of course Sony helped, who would you expect to help develop your Blu-Ray BD-Live technology?

    PS3 compatibility is just a happy coincidence, I’m sure Netflix will claim!

  21. FiftyQuid Says:

    I take it “late 2010″ is when MS’s exclusivity clause with Netflix runs out. Hence the delay and the reason for the ‘loophole’ disc. :)

  22. BigWoopMagazine Says:

    Is there a way to check out their streaming library without signing up for an account? I’m not a huge movie watcher, but I feel like I wouldn’t mind streaming a classic from time to time.

  23. cshawnc Says:

    @jaewest304: actually, what I’ve read indicates that Netflix will be streaming HD content to the PS3. wish I had saved the link – I believe it was on 1up.com. YAY for HD!

    @andrew: After spending $400 on a PS3, $1000 on a TV, $60 on every disc-based game, and at least $10 a week at the PSN store (I’m probably, sadly, being way too modest with that $10), I’m THRILLED to save $50 by not having to buy the equivalent of a Gold Xbox Live account.

    @all: Anyone else remember that Sony promised a streaming movie and TV service to be available this fall? Looks like they came through, just no one expected to actually be Netflix.

    Now if they’ll release some “exclusive” DLC for GTAIV on a Blu-Ray disc for PS3, all would be right in the world. LMAO

  24. The Queef Sisters Says:

    Another fast ball to the nuts. Go sony its your birthday. Sometimes I feel like sony is microsofts older brother and sony just walked by and said hey msoft think fast then he nut tapped him and walked away laughing while msoft stands there crying and holding themselves for comfort.

  25. JohnnyTruant5 Says:

    @queef sisters
    I’d qualify this netflix thing as a wicked charlie horse but you had the right idea.

  26. DGR8Mc187 Says:

    LOl @ The Queef Sisters comment and at Smokey_Vols as well good movie refference.
    Slowly but surely Sony will keep hacking away at what MS calls a better online service until the pint that the only difference betwen Xbox live and PSN will be that one is free and one you have to pay for.

  27. shadowjin Says:

    hell yeah.. been debating on getting netflix anyways.

  28. jaewest304 Says:

    @ cshawnc

    I dont think that Netflix is going to be doing HD streaming for just the PS3 since they do not offer it for the PC or the 360 or other media boxes like my Blu Ray player with the bulit in Netflix. I wish they would do HD streaming but I also wish they wouldnt charge extra for blu ray access monthly either.

  29. joinsideke Says:

    Sorry to seem biased, and i am, but kudos Sony.

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