“We are very proud to announce that by every measure we are now a streaming company, which also offers DVD-by-mail. In Q4, we’ll spend more on streaming content than DVD content, and we’ll deliver many more hours of entertainment via streaming than on DVD. More impressively, a majority of our subs will watch more content streamed from Netflix than delivered by us on DVD. DVD-by-mail shipments are still growing, but streaming for us is much larger and growing much faster.”
Netflix turned in another stellar quarter, adding nearly two million new subscribers to its total of nearly 17 million. Two-thirds of those customers stream content, up from 41% in Q3 of 2009. Revenue grew 30% to $553.2 million.
Was anyone surprised by Hastings’ comments? Netflix’s language on its website has already positioned the DVD by-mail service as a bonus to a streaming subscription for some time now.
Such commentary from Netflix’s CEO, along with its unquestioned dominance in the sphere begs the question: how will competitors—including Redbox—catch up? Also, how will Coinstar/Redbox’s numbers compare when it reveals its Q3 results next week?