This morning on Engadget, they carried news that Netflix “indefinitely postponed” their online movie download service due to licensing rights that just about everyone pointed out was going to be an issue (when the rumors started a year ago, that was my first thought). After hearing the news today I wondered "what about the TiVo/Netflix deal?" and Dave got the scoop from Netflix's conference call about it: the TiVo/Netflix deal sounds quite dead.
It's a shame we won't be seeing this, because we have the technology right now to let people watch movies over the internet, streamed down to their TVs instead of having to waste time, energy, and effort mailing out a bunch of plastic discs. But once again, the best interests of copyright holders doesn't mesh with the best interests of their customers. I knew getting studios to agree to movie streaming was a longshot, but I'm surprised they helped kill the project before it ever got a chance to debut. Who knows how popular it could have been and how much revenue Netflix, TiVo, and the movie studios could have made from it.