Netflix claims that its online DVD rental business can peak within 5 to 10 years. Reed Hastings, CEO of the company claims that even if DVD rentals are still way ahead of online rentals, their business can still be expected to reach its peak. “Everybody peaks sometime,” he claimed.
The company also aims to shift to streaming television and movies online. They have recently introduced the Roku, a Netflix-enabled set-top box that make video-to-television transfer possible. Hopefully, by next year Netflix will be able to get into future game consoles, Internet-enabled televisions, and high-definition DVD players in the future.
Currently, Netflix has 10,000 titles that are available for online streaming. Most of these however, are older and independent films. None are high-definition films, yet. They are working on having the studios provide the rights so the business can have more films to offer moving forward.
They believe that offering a combined online DVD rental and a streaming service for a monthly fee is the right model to compete against the video streaming giants like YouTube, Apple, Amazon, etc. Netflix believes that they can reach up to 20 million subscribers through streaming.
The company stands firm in not getting into advertising for finance, and download fees. It promises to allow their consumers to watch videos, any time of the day, as well. However, Netflix is not bound to introduce a stand-alone streaming service as of the moment.