Netflix: 20 Million Future Streaming Customers, DVD Peaking

Netflix executives are bullish on online streaming as the future of the company, as they predict by-mail DVD rental to peak sometime in the next five to 10 years.

If successful, Netflix expects it can attract "well beyond 20 million" subscribers worldwide. Currently, the company has 8 million subscribers and expects to bring that up to 10 million subs by next year. The company's key challenge is to grow earnings per share and subscribers while increasing online video customers. It expects to have to make some upfront "fairly inefficient" investments in 2008 and 2009.

Netflix launched a direct-to-TV streaming set-top box with Roku and is expected to announce other streaming partnerships in the future; Wall Street is predicting one of the partners could be Microsoft.

Competition for Netflix ranges from improving video-on-demand services from cable and satellite companies to downloads from Apple iTunes and Amazon.com jumping into the instant-satisfaction streaming video business.

For more:
- View the Netflix Investor Day webcast
- News.com blogs about Netflix predicting the death of the DVD

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