Netflix Could Launch Video-Streaming-Only Pricing by 2010: CEO

Netflix, whose core business remains DVD rentals, although it also has a video streaming service attached to its plans, may launch video streaming only pricing as early as next year, according to comments made by CEO Reed Hastings in a interview with Bloomberg.

Hastings didn't say how much the service would cost, but I would think it would be less than the currently unlimited video rental cost of $8.99 / month. In order to pull this off, however, Netflix would have to substantially increase the number of videos available for streaming. Currently Netflix has 100,000 titles available for DVD-by-mail, compared with 12,000-plus titles for streaming.

From the report:

"Right now, the power of the service is that hybrid message, the best of both," he said, referring to customers' ability both to watch online video and to order DVDs under a single plan. "So we’re putting most of our wood behind that. But we recognize at some point in the long term, the streaming will be good enough that an appreciable number of people will find streaming is all they need."

Netflix is sort of in a chicken-and-egg situation, however. Hastings said they need to increase their subscriber base in order to be able to increase its video streaming library, yet a larger video library, and a streaming-only service plan, would attract more subscribers.

One thing to wonder about: if they start a video-streaming only plan, will they start charging a surchage for video streaming on DVD rental plans? It would seem to be a logical extension. We'll see.