As a confirmed Netflix addict, I was immediately intrigued by the new Netflix Player by Roku, an on-demand video streaming device that works with the popular movie rental service. How does the Roku box compare with the Netflix device of my dreams? My dream device wouldn't require a PC, just like Apple TV—Check. It would be diminutive and discreet, yet have excellent connectivity (HDMI with surround sound, S-Video, standard composite and component ports)—Check. It would be incredibly easy to set up and would update available films on the device whenever I updated my queue online—Check. I'd pay an upfront cost—say $100—for the box, but my monthly subscription fee wouldn't increase—Check. Lastly, it would have full access to the entire Netflix library—No check there. Well, four out of five ain't bad—in fact, that's pretty fantastic.

Remember the early days of the iTunes video store, when finding anything worth watching was a fruitless endeavor? Now, though, iTunes is thriving, with a bountiful film and television selection that's constantly growing. Some titles are even in HD with surround sound. Netflix's "Instant" SD-only service is akin to the early days of iTunes. The title selection isn't weak, per se, but it's definitely limited. The folks from Roku described it to me as "a mix of old films, new 'indie' releases, and television content." That seems pretty accurate, and while there are only about 10,000 titles currently available—that's about 10 percent of what's available from Netflix on DVD—the options are not what I'd describe as second tier. I enjoyed some great documentaries, as well as independent films such as 2 Days in Paris and Sherry Baby, and classics like Nosferatu. A Netflix representative was unable to tell me what types of titles would be added in the future, but he did say that the company intends to expand its library and will offer HD streaming in the future. And when that happens, the Roku box is already equipped to stream via HDMI.

One big disadvantage with Netflix as compared with—for example—Apple, is its business model. Apple charges per movie download, so a slice of that revenue goes to the movie studios. Netflix, being a subscription service, doesn't charge any more for its "Instant" streaming releases. Don't expect the studio execs, who have been slow to accept Apple's solution, to embrace one that pays them even less anytime soon. For now, in other words, I anticipate independent films, documentaries, TV shows, and classic films to comprise the bulk of Netflix's Instant library.

A small, nondescript black box, the Netflix Player measures a mere 5.1 by 5.1 by 1.6 inches (HWD), so hiding it is easy. A tiny pale white light for the remote and the Roku logo are all you see on the unit's front. The back panel offers HDMI, component, composite, and S-Video outputs, as well as the connection for the power supply and an Ethernet port. In case your router is nowhere near your TV, the box also supports 802.11g Wi-Fi. The remote control is clunky-looking and basic. You get are arrows for navigation, a Home button, Play/Pause, Forward/Backward buttons, and that's all. The box comes with a composite video cable, and setup is a snap, even with password-protected networks.

Streaming performance is excellent. I encountered practically no sputtering, excellent audio quality, and near-DVD–caliber video. If you stop watching a film and come back to it later, an auto-bookmark is created, providing the option to resume viewing from where you left off.

The user interface, adorned with the Netflix logo and colors, is not unlike Apple's Cover Flow. Clicking through movie posters shows you what's in your Instant Queue, which you can manage online. Select a film and it starts playing within seconds. One sneaky aspect of the menu: The Settings section is hidden. Using the Up arrow and then the Right arrow on the remote makes it appear, but settings are incredibly limited. There's a Network option to switch between wired and wireless networks; Display Type adjusts the aspect ratio from 4:3 to 16:9; Sound Effects is a poorly named option that increases or decreases the overall sound level of the button clicks on the remote. There are also settings for the screen saver, a player info page, and a factory reset option. That's it.

The Netflix Player decides the bit rate at which to stream movies based on your network connection. Pretty smart. Problem is that the device may choose to pump out content at 0.5 Mbps, which is way too slow for video. Instead of letting you know that your connection isn't fast enough, the player will simply stream your video at the worst resolution you've probably ever seen. Imagine a grainy YouTube video shown on a Jumbotron, viewed without your glasses. Yes, it's that bad. The good news, though, is this was a problem only when I connected the box to our corporate network. (The Netflix Player is really suitable only for home setups.) I did encounter the same low-res/low-bit-rate issue at home one time. That happened after I had paused a movie for a long time, but I suspect this has more to do with my wireless network than with the box itself. That said, this wasn't a persistent problem on my 802.11g wireless network, and restarting the movie from where I left off fixed the problem.

I have a major gripe with the Rewind/Fast Forward function on the remote: It stinks. Instead of seeing footage rewind or speed up in motion, you are merely offered a series of vignettes from the movie, and picking the one you want cues up that moment. True, there's an option to select a scene every few seconds, but the control is jumpy, and it's difficult to cue precisely. This is clearly a consequence of the box's having no hard drive and of content being streamed, not downloaded. Don't expect the instant gratification that downloads and DVDs offer.

Despite minor flaws, the Netflix player from Roku offers near-instant streams of movies without increasing your subscription cost. My sincere hope is that Netflix cribs from Apple's playbook and offers a wider Instant queue selection in the future. As it is, the library still has plenty to offer, but it's only a small slice of the full catalog. If the selection improves, I'd gladly pay $100 for a box. Netflix partnerships with other manufacturers, such as LG, have been announced, and deals with at least two more unnamed partners are in the works. My guess is that eventually, the streaming feature will be part of Blu-ray players and TVs. But for now, the Netflix Player by Roku strikes me as a great value for early adopters and film addicts alike.

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