Netflix To Deliver Movies Over Internet

Online movie rental service Netflix Inc. plans to do next year what its name has always promised: deliver a movie via the Internet.

“Our strategy is to get huge in DVDs and then expand into downloads,” Netflix Chief Executive Reed Hastings told Reuters on Friday. “When we get to 5 million or 10 million subscribers, eventually what we spend on postage becomes a prize for the movie studios.”

Money saved by sending movies directly to consumers’ homes via the Web could be plowed back into buying more DVD titles to meet customer orders.

Read the full story at Reuters.