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Netflix may flip model, offer streaming-only with DVD add-on

Zach Epstein
October 21st, 2010 at 7:30 PM

Netflix CEO Reed Hastings reaffirmed Wednesday that the home entertainment giant is looking closely at flipping its service model. Netflix currently offers a range of mail-order DVD rental packages with “Watch Instantly” video streaming as a free perk. As the popularity of streaming video services continues to grow, Hastings has repeatedly made public the company’s interest in a streaming-only plan. Here are Hastings’ most recent remarks from Wednesday’s earnings call:

Three years ago we were a DVD-by-mail company that offered some streaming. We are now a streaming company, which also offers DVD-by-mail… Pure streaming could become Netflix’s core offering in the U.S., with discs being offered as a supplement for an additional charge.

The company got its start as an underdog providing DVD rentals by mail and quickly rose to play an integral role in the eventual bankruptcy filing of movie rental giant Blockbuster. The move to a streaming-centric model is seen by many as the next logical step in Netflix’s evolution.

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Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.




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