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Netflix to start streaming-only subscription plans

20 February 2009 21:14 by Andre "DVDBack23" Yoskowitz | 15 comments

According to Netflix CEO Reed Hastings, the company may start offering a streaming-only monthly subscription beginning in 2010, eliminating the need for physical media delivery.

Netflix has over 10 million subscribers and notes that "millions" of those users currently use the company's streaming library. The library consists of over 12,000 titles compared to over 100,000 physical DVDs.

Customers currently pay for a monthly subscription that includes mail delivery and access to streaming movies, but Hastings noted that the company's future success "hinges on its ability to transition to online video from DVDs."

�Most companies that are in our shoes fail,� Hastings added. �Most companies that have a sort of generational evolution forward, like AOL from dial-up to broadband, fail. And it�s catastrophic for investors.�

The company has been broadening access to its online streaming library in the past six months, adding the service to the Xbox 360 as well as to TiVo and a number of Blu-ray players.

�Right now, the power of the service is that hybrid message, the best of both,� Hastings noted, in reference to users ability to stream and get physical delivery. �So we�re putting most of our wood behind that. But we recognize at some point in the long term, the streaming will be good enough that an appreciable number of people will find streaming is all they need.�

Permalink to this article

Blockbuster, Samsung strike TV streaming deal (15 July 2009)

Preview: Boxee social media center for Windows (27 February 2009)

Netflix reaches 10 million subscribers (16 February 2009)

Roku's Amazon VOD beta fills up quickly (6 February 2009)

Xbox 360 Netflix client reaches 1 million customers (5 February 2009)

Netflix considering premium offering with HBO content? (2 February 2009)

Update: Wal-Mart, Netflix sued again over 'conspiracy to create a monopoly' (1 February 2009)

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Discuss this article!
khmernize (Newbie) 20 February 2009 23:14
It would be nice if they could stream the new movies and maybe a little cheaper monthly subscription. It does get a little boring watching movies you already seen. [ + quote]
vballstud (Inactive) 20 February 2009 23:25
*Originally posted by khmernize:* It does get a little boring watching movies you already seen. Ummm... isn't that why you put the new movies in your rental queue and just stream the older movies??? Afterdawns e-Thug I have no tolerance for idiots... or people that dont know how to use Google. [ + quote]
khmernize (Newbie) 21 February 2009 14:14
The point of the article is that they want to have streaming on demand account in the future. It would be nice if they have instant watch updated more often. Maybe we can choose our open video format also. [ + quote]
garmoon (AfterDawn Addict) 22 February 2009 10:41
What they are really trying to avoid are the postage costs associated with each way mailing, close to $1 round trip. There will be also some drms temporarily used (they will be cracked)to keep people from copying to movie to HDD and ultimately pirating it! I was on one of their steaming plans, and the movies offered were god awful! [ + quote]
danielsco (Inactive) 22 February 2009 12:30
spam edited by ddp [ + quote] This message has been edited since posting. Last time this message was edited on 22 February 2009 21:03
lxhotboy (Member) 22 February 2009 13:02
*Originally posted by garmoon:* What they are really trying to avoid are the postage costs associated with each way mailing, close to $1 round trip. There will be also some drms temporarily used (they will be cracked)to keep people from copying to movie to HDD and ultimately pirating it! I was on one of their steaming plans, and the movies offered were god awful! What device were you using to stream? Tivo, xbox360, computer, other? Did you have enough bandwith to allow for the highest level of video quality? Just wondering. If you did, it was still awful? I use xbox360 and get the maximum, 4 bars picture quality, and the picture quality is close to dvd. I do wish it were able to stream a lot more HD movies. Quality needs to be at lease 720P and it would be nice to have 1080. Sorry if you were referring the library offerred online i would have to agree with you totally and i am sure if they have streaming subscriptions only they would have to add every movie they have to their streaming selection. If a new movie is to be released on DVD and B-ray tomorrow then i should be able to stream it the same day it is released to buy in the store. [ + quote] This message has been edited since posting. Last time this message was edited on 22 February 2009 13:06
atomicxl (Junior Member) 22 February 2009 14:26
I'd love a streaming only option. I used to be really hard core into DVDs but i've had the same 3 discs at my house for over 6 months now. I reduced my plan down to 1 disc a while back (still haven't sent in the 3 dvds though) but I just don't use it. 1 DVD and unlimited streaming is like $8.99 I might considers streaming only for $5.99, but it'd be a no-brainer for me if it was $4.99 [ + quote]
redux79 (Member) 22 February 2009 16:02
Netflix needs to add some sort of speed test option so when your quality is being downgraded you can see how much your bandwidth has dropped. I have to unplug my router about twice a day to get my maximum bandwidth. A few days ago I was dropped to 128 kbps, the real problem with streaming will be isp�s screwing their customers over. I�ve been trying to use the new google apps to see when I'm being throttled but the servers are always down. [ + quote]
khmernize (Newbie) 22 February 2009 16:27
Another option I would like to have is audio and subtitle configuration like dvd. Its bad enough to watch international movies with horrible voice dub but give me an option to turn on the subtitles. [ + quote]
garmoon (AfterDawn Addict) 22 February 2009 17:27
@lxhotboy It was NOT a problem with streaming (Cable-pc)! The problem was the god awful selection of movies that cold be streamed! Nothing just out or decent. Their whole catalogue is NOT open to streaming. Only the crap! "Remember some people are alive simply because it is illegal to shoot them" [ + quote]
varnull (Inactive) 22 February 2009 17:33
And this is why the isp's want to cap our bandwidth.. so they can turn the internet into another "broadcast" medium.. like radio and tv.. ever thought why they want to kill analog radio and tv? compare digital to analog.. right now we have a pretty open worldwide internet.. soon it will be local "approved" content only.. just like digital tv and radio. Free open source software = made by end users who want an application to work. I would rather you hate me for who I am than love me for what I am not. Welcome to the other side of the looking glass Alice [ + quote]
garmoon (AfterDawn Addict) 22 February 2009 23:35
you got that right Paula. "Remember some people are alive simply because it is illegal to shoot them" [ + quote]
bratcher (Senior Member) 27 February 2009 22:24
I'll bet Netflix is thinking if they could get every movie they have on DVD into streaming media it would cut out all the people copying DVD's rented from the service. I wonder how many Betflix customers copy the rented DVD's before they return them for more DVD's? Straming would put an end to that quick!! [ + quote]
hermes_vb (Senior Member) 1 March 2009 23:58
*Quote:* Ummm... isn't that why you put the new movies in your rental queue and just stream the older movies??? That's exactly what I do. Latest and greatest on Blu-ray or DVD and documentaries and oldies via streaming. [ + quote]
bratcher (Senior Member) 2 March 2009 1:46
*Quote:* *Quote:* Ummm... isn't that why you put the new movies in your rental queue and just stream the older movies??? That's exactly what I do. Latest and greatest on Blu-ray or DVD and documentaries and oldies via streaming. My problem is not every old movie I want to see is available for sreaming so I still have to rent DVD's for the ones that can't be streamed. And they have me for 8 movies (on DVD) at a time. I don't mind that.... [ + quote]