July 29, 2008 by Rachel Cericola
Holding out hope that Netflix will one day operate like iTunes? It could be a long wait.
Netflix CEO Reed Hastings says that the company plans to stick with its current subscription system, despite all of the digital services popping up.
“We don’t plan to enter the pay-per-view segment, where Apple, Amazon, Sony and others focus, or the ad-supported segment, where Hulu, YouTube and others compete,” he said Friday during the company’s second-quarter earnings call (via The Hollywood Reporter).
Instead, they are hoping that new compatible hardware, as well as the “free” streaming that comes with the monthly fee, will entice more subscribers. Have any Netflix subscribers actually used that perk? I haven’t indulged, but maybe because only two of my selections are available online—and they are at the bottom of my queue.
Hastings also predicted that the service would continue to grow, even as the DVD business slows down. Who could argue with the guy? Netflix added 168,000 new subscribers in the second quarter alone. The company also says that revenue is up 11 percent to $337.6 million from $303.7 million last year.
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Over the past 15 years, Rachel Cericola has covered entertainment, web and technology trends. Check her out at www.rachelcericola.com.
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