Netflix Digs In For Fight

Chief Executive Reed Hastings says the online movie rental store is ready to forgo 5 years of profits in order to beat out the competition which includes Blockbuster and Walmart.

“Online DVD rental leader Netflix Inc. is prepared to sacrifice profits for as long as five years in order to win up to 20 million U.S. subscribers and fend off major rivals such as Blockbuster and Amazon.com, its CEO said on Wednesday.

Chief Executive Reed Hastings said Netflix, the pioneer of online DVD rental, could capture as much as 20 percent of the U.S. market by extending the strategy it embarked on in October to run at break-even while spending heavily on marketing. ”

Read more at Reuters