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Neon Tommy - Annenberg digital news

Netflix Rolls Out Streaming-Only Plan

Neon Tommy |
November 22, 2010 | 9:25 p.m. PST

DVD-by-mail giant Netflix introduced a new streaming-only plan

Creative Commons photo from Flickr user dolphinsdock
Creative Commons photo from Flickr user dolphinsdock
this morning that the company says reflects its users' growing preference to stream media over the Web.

Since apparently even one day of foresight is too much for the average American when it comes to movie viewing, Netflix will now allow users to stream unlimited TV shows and movies over the internet without subscribing to get a DVD in the mail. The plan will be $7.99 monthly, while the other plans will become more expensive.

Part of that cost covers Netflix's huge server demands, since Netflix is responsible for nearly 20 percent of Internet traffic during peak hours.

The move signals that Netflix is ready to be a full-on contender to Hulu Plus, the expanded version of the current leader in online TV streaming. GigaOm points out that Netflix has advantages in the content market that Hulu may never be able to match.



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