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In a bid to remain atop the online movie rental business, NetFlix said it will deliver movies directly to TV sets later this year. Currently NetFlix only lets subscribers to its "Watch Instantly" service view rentals on PC screens. This new service will come in the form of a new set-top box that connects to the TV and computer, much like Apple's Apple TV product. In many ways, the device isn't a new approach or anything really startling--the main thing is that it's coming from NetFlix which already had a deep library of movies, an existing DVD by mail rental business and the PC viewing option. Those things make it a very compelling strategy and is may make it a success for NetFlix. In essence, NetFlix is understanding that it's critical to deliver content (movies, TV shows, etc.) to TV screens since many people are getting HDTV sets and most do their viewing on the big screen in the living room. Having yet another set-top box, however, seems like the biggest flaw in this plan. People will not rush to buy another box unless it offers something compelling that they can't get anywhere else. And customers can definitely get movies in many other ways, without getting a new box and hooking it up to a PC, like the NetFlix service requires. For example, want to watch a recent hit movie like Pirates of the Caribbean? There's On-Demand, DVDs, free TV, premium channels like HBO, and online pirated versions available. Will consumers really flock to a device that just delivers movies? Tivo seems like it has the right approach with its partnership with Amazon for its Unbox movie delivery service. However, Unbox (and even Apple TV) have not been huge hits. Another downside is that the movies that NetFlix delivers to TVs will likely not be HD-ready. Many people will still want to rent the physical DVDs, especially if they own Blu-Ray or HD-DVD players. Guess we'll have to wait and see how NetFlix tackles this interesting new delivery to the home. [tags] Apple TV, Apple, NetFlix, Amazon, Tivo, Unbox [/tags]