Netflix posted an interesting blog entry this weekend on which they went behind the scenes as to why there isn't an Android Netflix app just yet. Apparently, it has to do with the fact that Android devices are fragmented, and there isn't a single DRM system across the board, unlike the iPhone and Windows Phone 7 (which both have a Netflix app.) This means that, according to the blog, it's much harder to ensure security of the video content provided by Netflix, which is something that's required by publishers. Still, they are working on it, and now say that they will be able to release an Android app for "select" devices early next year. While there is no mention of which ones, more updates are said to be upcoming.
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