“Right now, the power of the service is that hybrid message, the best of both,” he said, referring to customers’ ability both to watch online video and to order DVDs under a single plan. “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.”
Netflix needs to increase subscribers so it can spend more to expand its library of titles for online streaming, Hastings said. That involves drawing in more customers renting DVDs by mail, improving the online-streaming technology for computers and getting its software embedded in consumer devices, he said.
Netflix is seeking to make licensing deals with channels like Time Warner Inc.’s HBO and CBS Corp.’s Showtime, Hastings said.
Snirnivoss Anonca – Oppenheimer & Company
I know that the streaming service is currently complementary to the normal subscription service but in the future do you plan to launch a dedicated streaming service?
That’s definitely a possibility, there’s nothing that prevents us from offering dedicated. Our view on it is the bulk of the market is interested in the big new releases and in the subscription and we’re able through the DVD combination to provide that. It’s definitely a possibility for the future but we don’t think there’s a big market there for streaming only given the content availability situation which is roughly 100,000 titles on DVD and about 12,000 on streaming.
I'd like a streaming-only account for my kids, who watch their shows and movies on the Roku Player, and are less dependent on new releases. My wife and I watch more new releases, so until there are more titles available I think we need the hybrid DVD/streaming plan.