In an announcement that sounds like it should be straight from the mouth of Captain Obvious, Netflix revealed that those of its customers who make use of its online streaming feature end up renting fewer DVDs. So why is this news important? This is a prime example of the ongoing shift in media distribution away from physical items containing recordings, and into a data-based system.

Streaming video isn't just a novelty we use to amuse ourselves while online; it's actually beginning to replace traditional ways to access content. While you may not get rid of your TV to watch YouTube clips on your laptop exclusively, we're seeing more and more changes to how we get our hands on entertainment. Last year seemed like the year of Netflix streaming to set-top boxes, including stand-alone receivers, Blu-ray players, and game consoles. Once access to streaming content reached that plug-and-play level of simplicity, it was just as matter of time before the balance started tipping.

Netflix is still primarily a DVD rental-by-mail service, but this news is indicative of a larger trend. Sure, the quality of streaming video isn't as high as the original DVDs, and the selection of available titles doesn't yet hold up to Netflix's DVD library, but we're learning that the key selling point in transitioning to streaming video seems to be convenience. When you can watch a film right away, any benefits to watching the actual DVD disc seem outweighed by the time you'd spend waiting for it to arrive by mail. It's intriguing that users of the service don't seem to be augmenting their viewing with an online title now and then, but choosing to stream films instead of watching them on DVD.

If you're interested in learning more about setting up your own entertainment system at home to let you access streaming content like Netflix offers, check out our series on ditching your cable box.

This story around the web: