Netflix has just announced its new “Watch Now” feature that allows subscribers to watch their rented movies streamed over the Internet. This was a direct response to Blockbuster’s Total Access program, which allows its subscribers to come back and get new movies from local Blockbuster stores, a feature Netflix could never compete with. The Blockbuster franchise is simply too big. However, as the internet speeds up and more people connect their TV to their PC, streaming movies is becoming the future.

Streaming movies is a service that companies like Apple and Amazon also offer, so Netflix is ​​certainly the first to do this, but it is the first company to stream movies alongside DVD rentals. Subscribers can watch one hour of video for every dollar their subscription costs. So the $17.99 plan will get you 18 hours of movie viewing through Netflix.

So what is the problem with streaming movies anyway? Who would want to watch an entire movie on their computer monitor? Well, technology is finally catching up to make this a possibility. First of all, broadband internet speeds are getting faster. Second, more and more consumers are finding ways to connect their computer to their TV, including wirelessly. So video on your computer doesn’t need to be confined to your monitor.

And what does all this mean for the movie and DVD rental industry and, more importantly, for consumers? Those who depend on DVD rentals to make money are better off finding a way to stream their movies to their customers. Consumers are starting to want their videos and movies On Demand, and as technology grows, so will the demand for instant gratification.

For all consumers, you may not be ready for streaming video yet. Current offers from DVD rental companies may be right for you. If that describes your needs, then you’re still in the majority. Streaming video is not as popular as traditional online DVD rental services offered by companies like Netflix, Blockbuster, and GameznFlix. The switch to streaming video will be slow, but it will happen. Don’t worry, you won’t have to change until you’re ready.

What can we expect in the near future?

More products designed to connect computers to TV screens, especially wirelessly

Larger LCD monitors become less expensive

Even more consumers will use broadband internet at home

All the major DVD rental companies will begin offering video content directly over the Internet.

So just sit back, relax and wait for the changes to happen. Streaming video may seem like a novelty for now, but pretty soon everyone will be using it in one way or another. Maybe one day all your movies, videos, and TV shows will come straight from the Internet to your TV screen.