netflix-discs.jpgRealNetworks' (RNWK) latest product: RealDVD, a $30 software app that lets you rip DVDs to your hard drive to watch on your computer. While Real has taken precautions to prevent nefarious use -- DRM, a limit of computers the movies can be viewed on, etc. -- this will piss off the movie industry; the NYT has a rundown of the copyright situation.

But if the software takes off, who's a clear-cut winner? Netflix, obviously.

People don't want to rip a movie to their computer that they already own on DVD -- there's no point to that. Especially if Real's DRM prevents you from watching it on an iPod. So where's the best place to get a steady flow of movies long enough to rip -- without having to buy them? From red paper envelopes, of course. If RealDVD catches on, expect Netflix (NFLX) to benefit.

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Amazon Launches Video Streaming Service: Look Out iTunes, Hulu, Netflix