Netflix on Linux: Why This is Advantageous for Everyone

May 10, 2010 - By Erin Stuelke

I recently installed the Linux distribution Fedora 12 on my desktop and was curious if Netflix would play on my setup. As you might have guessed, it doesn’t. While searching around for a fix, I came across a 20-page thread on Netflix’s community forum hashing out the issue. After sifting through the OS flame wars, it became apparent the only reason Netflix Instant Watch isn’t available for Linux users is Microsoft.

Netflix streams in a browser using Microsoft’s Silverlight plugin, essentially a beefed-up version of the Flash player with Microsoft’s PlayReady Digital Rights Management. An open-source version of Silverlight is available for Linux called Moonlight which is developed by Novell in collaboration with Microsoft. Microsoft even acknowledges Silverlight support for Linux through the use of Moonlight. However, the major difference between Silverlight and Moonlight is the PlayReady DRM. Without the DRM, Netflix movies won’t stream.

Moonlight’s project site lists PlayReady a feature, but the status is unsupported meaning that Microsoft has not yet licensed PlayReady for third-party use. Since Netflix relies on external resources to provide its streaming capabilities, the onus lies on Microsoft to release their DRM library for third-party use.

My question is why doesn’t Microsoft do so? Releasing the DRM library would be advantageous for all parties involved: Netflix, Microsoft and Linux. First of all, it’s easy to see why this would be advantageous for Linux users. They would have the option to stream Netflix! But how is it beneficial for Netflix and Microsoft?

Let’s assume that the number of Netflix subscribers using Linux closely resembles the number of Linux users surfing the web: 1.6%. Based on information from Netflix’s website, there are over 13 million subscribers, so that’s approximately 200,000 people. The minimum fee for unlimited streaming is $8.99/month. With 200,000 subscribers paying $8.99/month, that brings in almost $22 million in revenue per year. According to their 2009 Annual Report, Netflix brought in $1.67 billion in revenue last year. While $22 million seems like a drop in the bucket compared to $1.67 billion, it’s still a significant amount of money. Since they don’t provide the player themselves, Netflix wouldn’t have any extra overhead if Microsoft allows PlayReady DRM integration with Moonlight. Therefore, the benefit for Netflix is obvious: increased profits.

But what about Microsoft? While not as clear as the reasons for Netflix and Linux users, Microsoft can possibly benefit financially through their partnership with Netflix. The more revenue Netflix brings, the more resources they will have to pass along to Microsoft as the partnership develops. Another more subjective benefit for Microsoft is improved relationships with the Linux community. Improved relationships allows better collaboration and increased creativity. But based on Microsoft’s track record of failed promises for cross-platform support of other products, it seems unlikely that they will release a PlayReady DRM SDK for open-source projects.

The other option is for Netflix to put resources into a different streaming technology for Linux platforms or at least a technology that encompasses Linux distributions. They already provide support for a multitude of other platforms, such as the XBox 360, PlayStation 3, Nintendo Wii, several Blu-ray disc players, some internet TVs, Apple’s iPad, PlayOn software, Boxee software, TiVo DVR and even the Linux-based DVR Roku. Most people argue that the market share for Linux isn’t large enough for Netflix to allocate resources in that direction, but Netflix is currently working on bringing streaming movies to iPhone users, which amount to only 0.8% of total web traffic. That’s half the number of Linux users. You do the math.

Erin Stuelke
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