Our success with our pure streaming offering in Canada at $7.99 has encouraged us to test this model in the USA. If our results are as strong as we think they will be, then we will look to start this offering later in this Q4. Pure streaming could become our core offering in the USA, and DVD would be offered as a supplement for an additional charge, like we offer Blu-ray today. We’ll know by the holiday season if consumers would prefer this more streaming-centric approach.
Other rumors continue to swirl for tiered streaming plans that would offer shows soon after airing from pay networks like HBO, as well as day and date new movies to help compete with services like Amazon Video on Demand and Hulu Plus. It costs Netflix almost 10 times as much to send a movie to you as stream it, so by keeping the catalog price low and getting some juice from the premium packages, cable companies might start needing a bucket for that sweat, especially since one in 3 18-24 year old ‘Flixers have dumped cable for their service. There’s no question that with legit competition cresting the horizon, Netflix is going to need to step on the gas to maintain their lead.