Netflix passes 3 million subscribers

Online DVD rental company Netflix Inc. reports that it has surpassed 3 million subscribers. The company started the year with 2.6 million subscribers. Netflix took nearly four years to sign up its first million subscribers, but has added 1 million in the last 10 months.

Netflix pioneered the concept of online DVD rentals with no due dates and unlimited monthly rentals with three movies out at a time. It is locked in a battle with Blockbuster and Wal-Mart for the market now and has dropped its rental fees to $17.99 a month, from $24.99. It stocks more than 40,000 titles and maintains distribution centers in major U.S. metropolitan areas.

"Reaching the three million-member level underscores the fact that we`re fundamentally redefining the movie rental experience," said Reed Hastings, CEO and co-founder. "We`ve tapped a large and growing market that`s clearly attuned to today`s consumer lifestyle, and we foresee the continued adoption of the service as we refine and expand it over time."