Netflix: DVD primary movie format for next two years

PHYSICAL: CEO Hastings says subscribers mostly choosing two lowest-priced options

By Jennifer Netherby -- Video Business, 10/8/2009

OCT. 8 | PHYSICAL: DVD will be the primary movie delivery format at Netflix for the next two years, though it will continue to be part of the company’s business for the next 10 to 20 years, CEO Reed Hastings said this week in an interview with The Motley Fool.

Hastings didn’t go into detail on whether Blu-ray Disc or streaming or both would supplant DVD as the primary delivery method after DVD cedes its position.

In the past, Netflix has said that DVD would reach its peak volume between 2013 and 2018, as other delivery methods gain momentum. Company spokesman Steve Swasey said Netflix hasn’t moved its expected DVD peak date up or “nailed it specifically.”

The company’s subscriber base, now more than 11 million, continues to grow and boost DVD and Blu-ray shipments, the company has said in earnings calls.

Hastings said more subscribers now are choosing the two lower-priced subscription offerings: $8.99 for one movie out at a time or $13.99 for two.