Sue H---Future of Netflix

A great debate is raging about what the future of movie distribution will look like. On one side of the debate are those who claim the physical discs(ie; DVD and Blu-ray) will always be the superior choice. The other side---with a growing support base--claims online access or streaming video is the way to go. Netflix CEO, Reed Hastings, is siding firmly with the latter camp, and it appears Netflix is gearing up to move it's production from mail distribution to online streaming. Hastings indicated that sometime late this year or early next year, Netflix will offer online-streaming-only subscription plans. Hastings goes on to explain that in order for Netflix to be able to add more available online streaming content, it needs to pay for that content with new customers--many who will be signing up with the traditional DVD-by-mail service. Netflix has over 10 million paying customers, with 718,000 signing up in just the 4th quarter of 2008. Of the current 100,000 DVD titles available for rental-by-mail, only about 12,000 are available as streaming video. Hastings was quoted as saying " We've got one singular objective, which is 'Be successful in streaming'..If we do that, that's a homerun. The key to the company's success with the streaming video offer, will be it's ability to offer the service on devices other than computers. Currently Netfli has streaming options on Xbox 360,TiVo HD DVR, and Roku Digital Video Player. Although the service is not yet available on mobile devices--will the iPhone application be far behind?