Netflix CEO: DVDs will be around for a while

In a recent interview with The Wall Street Journal, Netflix CEO Reed Hastings predicts that DVDs will still be around as a viable business for a while, eventually usurped by the movie downloading business. Hastings think it's a matter of when DVDs will be come obsolete, not if. And right now, he thinks the time frame is more like 20 years away. I would like to think so since we haven't even begun the era of High Definition DVDs yet. That should easily last the next 10 years or so. Naysayers have been long been prognosticating the demise of Netflix if it doesn't evolve beyond DVD rentals. Now, Netflix does have plans to do that and is investing about $40 million by the end of this year to make available 5,000 titles out of 75,000 for movie downloads. No idea on when the download service will launch. But in the meantime, it's interesting to note that Hastings points out that their HD rentals from HD-DVD and Blu-Ray only account for 1 percent of their business. Not news there at all, since the common perception is that unless one of the formats win out, it's the consumers that will be losing out.


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