Netflix Inc. has announced it is considering a range of options as part of its strategy to enable subscribers to download movies from the Internet. However, clarifying remarks made at a media conference last week, the online DVD rental giant says vice president of original programming Eric Besner’s recent comment that the e-retailer is developing a proprietary set-top box that would let subscribers download movies to watch on their television sets is premature.
“His comments have been interpreted to suggest that the company has narrowed its downloading strategy to a set-top box product,” Netflix said in a new regulatory filing. But the company states no decisions have been made regarding specific delivery options or timing, though a proprietary set-top box is one of the options under consideration.
Netflix, No. 21 in the Internet Retailer Top 500 Guide to Retail Web Sites, is investing between $5 million and $10 million this year in downloading technology. It expects to discuss formal plans for an online download service for its 5 million subscribers during its fourth-quarter earnings announcement in January, the company says.
Some major film studios have begun offering select movies for sale and rental through web-based services Movielink and CinemaNow.
Netflix increased sales 35.9% in 2005 to $688 million compared with $506.3 million in 2004.
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