Netflix to launch streaming-only service
During yesterday’s earnings conference call, Netflix CEO Reed Hastings announced plans to launch a streaming-only rental service. Unfortunately that program won’t be launched in the US. The new program is meant to expand the company’s international profile, but that’s not the only reason we won’t see it stateside. Hastings also said the model needs to be proven in other markets before expanding.
That probably means Netflix wants to know the model can be profitable before launching worldwide. The new system faces unique challenges as the rent-by-post services just aren’t an option in other countries. Hastings says the postal systems in other countries can be too “tricky” for physical mail to really work out.
I’m all for a streaming-only option. Sure, I can have that now as a part of regular Netflix service, but the DVDs are more of a hassle to me than anything else. Why bother with them when all I want is on-demand movie selection?