err0r Posted July 3, 2012 Report Share Posted July 3, 2012 Netflix subscribers watched more than 1 billion hours of online video last month as the advent of high-speed Internet connections and high-powered mobile devices change people's viewing habits. The milestone announced Tuesday by Netflix CEO Reed Hastings came a day after Citigroup analyst Mark Mahaney issued an upbeat report about the company's future. The rising usage of Netflix's Internet video service may turn out to be a mixed blessing as the company phases out its DVD-by-mail rental service to focus on its goal of building a lucrative franchise in Internet-streamed video. Netflix is trying to wean people off DVDs to save on mailing costs and reduce its investment on a format that it expects to become obsolete. Delivering Internet video is quicker and less expensive than discs, but the streaming selection isn't as extensive as what's available on DVDs. To compensate, Netflix has been spending tens of millions of dollars during the past two years to add more compelling titles. Netflix's increasing popularity indicates that those efforts are resonating with subscribers. That's important because it helps validate a strategy that called for Netflix Inc. to invest heavily in video-licensing fees, even though the spending is expected to saddle the company with an annual loss this year — the first time that has happened in a decade. Source: AP Link to comment Share on other sites More sharing options...
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