http://www.reuters.com/article/idUSTRE6B56CH20101206
OnLive will get into the movie streaming business as well as the games business. Since they have the backing of AT&T and Time Warner, we could see a pretty swell number of titles on the service.
Also, coming 2011, a UK version of OnLive:
http://www.askmen.com/entertainment/special_feature_3700/3771b_onlive-5-things-you-didnt-know.html

Their name is getting around remarkably well, but I still doubt they will compete with Netflix. You never know though, I guess.

I think that the backing of Warner Bros. will help them out considerably. Imagine all the films that could be OnLive streaming exclusives...

Also, word-of-mouth is most likely causing the ranks of OnLive's members to swell considerably. Almost every tech blog, website, and publication is saying good things about it.

Even crazier is that OnLive apparently owns MOVA, which is one of the leading CG technology today. Used in movies like The Curious Case of Benjamin Button, Percy Jackson and the Lightning Thief, and The Incredible Hulk.

Thing is though I am not going to subscribe to multiple streaming services for movie rentals... if they play the exclusives game and make you sign up for 3 or more services just to get every studio... well, I'll just stop using them altogether then.

My local Blockbuster just dropped rental prices to 99 cents for everything but new releases.

Yeah, I think Blockbuster is trying to match their Redbox-like machine in terms of prices.

But what if they decided to combine it with their game ala carte system for $9.99? Two services for one?

It's weird they talk about expanding into the UK because I tried it out the other night. Perhaps it's only region restricted if you actually want to pay. The trials worked fine for me. Apart from the latency... World of Goo (a game I own and therefore have a feel for) felt very sluggish. Possibly the fault of my connection, but my connection is usually very fast.

It felt a millisecond off for me, but only a millisecond. Much, much better than it used to be, though. They've made vast improvements and it almost feels exactly like it's native.

I imagine performance will improve for you when they move to the UK.

There are licensing issues with going to the UK, as they presumably didn't get a world wide license to the materials. But actually serving the UK should be pretty easy, folks there are pretty concentrated.

Latency is really the main issue that they have in terms of providing service. Crappy Qwest and Comcast are our regional duopoly and neither company cares about providing any sort of decent latency. I just found out yesterday that Qwest is charging me basically the same rate as those that are getting 40mbps via fiber. I'm getting barely 5mbps via DSL.

But, If you've got a decent connection it's a great service, even here when it works it's great, it just tends not to be the most reliable since the ISPs here suck so hard.

I guessed it was something to do with licensing but I would have thought it would apply to the trials as well, because they're not normal demos. As far as I can tell it's the full game with a time limit being imposed by OnLive themselves.

Yeah, that's how it works. I haven't played the full 30 minutes of a trial yet, but if I remember correctly, the game will basically pause and say "Buy PlayPass to continue where you left off!" and if you just exit out, none of your progress is saved.

Yep, that's probably one of my biggest complaints about the service. If you get kicked off without it saving you don't get to resume where you were. For the purposes of paying, that's not quite as big a deal, but it gets really annoying when a network problem makes it so you can't resume within the allotted time frame.

I do like it that they let you try as many times as you want, so when your trial runs out, you can just hop back on. I feel a little guilty for playing a bunch of Virtua Tennis 2009 using this method.

I think it's going to be a serious competitor in the future. As soon as the FCC and the DoJ decide to actually do something about the abuse of power by the regional monopolies and duopolies that exist.

I know I'm kind of obsessing, but it seems a tad unreasonable that I have to pay what in other markets would result in a significantly faster connection because the local broadband companies don't feel like laying the wire. I'd probably be a lot less bitter about it if I wasn't withing 5 miles of an Internet Exchange Point.