http://www.pcmag.com/article2/0,2817,2369642,00.asp


Netflix is considering the launch of a streaming-only U.S. subscription
option in the next few months, chief executive Reed Hastings said
Thursday.

On Friday, Netflix also expand its licensing agreement with NBC
Universal to allow members to watch select NBC content via its "Watch
Instantly" streaming library for the first time.

The U.S. streaming-only option would allow users to sign up for access
to "Watch Instantly," but not its DVD delivery service. All Netflix
subscriptions currently provide access to its streaming library, but the
cheapest option in the U.S. is now $8.99 per month, which allows users
to check out 1 DVD at a time.

"We are looking at adding a streaming-only option for the USA over the
coming months," Hastings said in a blog post.

Netflix this week launched its service in Canada, where it is offering a
streaming-only option for $7.99 per month.

Hastings's blog post was not simply to announce a planned U.S.
streaming-only launch, but to apologize for a comment he made about
Americans being too self-absorbed. In an interview with the Hollywood
Reporter, Hastings was asked if Americans would ask for the same $7.99
streaming-only option Canadians were receiving. Hastings responded, "How
much has it been your experience that Americans follow what happens in
the world? It's something we'll monitor, but Americans are somewhat
self-absorbed."

Hastings said Thursday that his comment was an "awkward joke."

"I was wrong to have made the joke, and I do not believe that one of the
most philanthropically-minded nations in the world (America) is
self-absorbed or full of self-absorbed people," he wrote. "My apologies
to anyone offended by my self-absorbed comment."

It's been a week of apologies for the company. Also on Thursday, Netflix
apologized for allowing hired extras to misrepresent themselves as
potential Netflix customers and speak to the news media at a launch
event for Netflix in Canada.

Despite the gaffes, Netflix is likely to survive. The company added 3.06
million subscribers in the last quarter to just over 15 million. Netflix
also said that the percentage of subscribers who viewed "Watch
Instantly," or more than 15 minutes of a TV episode or movie, sometime
during the second quarter was 61 percent, versus 37 percent for the same
period a year ago, and 55 percent for the first quarter.

The company's "Watch Instantly" library does not provide access to
Netflix's entire content library; most new releases, for example, are
not available. But Netflix has inked several content partnerships in the
past few months that will bulk up the number of options in the library,
including deals with Nu Image/Millennium Films, Epix, and Relativity
Media.

On Friday, those options expanded to include NBC content, including
episodes of "Saturday Night Live," "30 Rock," "The Office," "Law &
Order: SVU," "Friday Night Lights," and "Psych." Netflix will also add
more than 75 episodes of Syfy's "Battlestar Galactica."

The multi-year NBC-Netflix deal kicks off next week.

A Netflix spokesman said Friday that he did not have additional details
on whether "Watch Instantly" would be further expanded for a U.S.
streaming-only launch.

In August, Netflix released a version of its mobile app that is
compatible with the iPhone and iPod touch. The upcoming Apple TV will
also have access to Netflix.
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