Sorry. I’m a little slow on the uptake here. Didn’t pay much attention to Roku (a device that allows you to stream videos via Netflix instead of dealing with red-envelope chaos). I used to be a rabid Netflix user, but finally got overwhelmed with the logistics.

But now if I buy a $99 Roku device and activate a $8.99 monthly Netflix account. Now I have unlimited access to 10,000 movies via streaming video.

When it seems too good to be true, it usually is. This doesn’t add up. The unlimited rental system made sense when Netflix was sending out DVDs in red envelopes. But now it would appear Hollywood would have a high incentive to squash this. In theory, I’d have no good reason to buy DVDs anymore, and I’d stop going to Blockbuster. So isn’t there a concern that this could cannibalize DVD sales and rentals? What possible monetization model exists between Roku/Netflix and the film creators?

Sure it’s not terribly convenient because it’s another darned device, it’s not portable, the video quality can vary depending on my bandwidth, and I don’t get the lovely color DVD case. But if I watch 2-4 videos a month, this appears like a relative no brainer.

Am I missing something?