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Netflix May Offer Streaming Subscription

March 3, 2009 | Author: Ibex Marketing

According to widely-reported comments by Netflix CEO Reed Hastings, the company could offer a subscription that only offers streaming movies, and this could become available by the end of this year or early next year. Currently, the company only offers the streaming as a free service to the more than 10 million subscribers who get one or more DVD discs by mail.

This is the logical next step for Netflix to transition eventually to electronic delivery for all its movies. This will take time and the cooperation of the major movie studios, but it is inevitable that the company will move to eliminate the costs of postage, handling, inventory management, and losses from lost or damaged discs. As the number of U.S. households with high-speed broadband access to the Internet grows, it makes the move to streaming delivery a practical plan. And it will save its subscribers that long walk to the mailbox and back.