Netflix sees online movie service on many platforms

By Sue Zeidler

SAN FRANCISCO (Reuters) - Netflix Inc expects to lead the market for movies delivered over the Web despite growing competition from Web giants like Apple and Amazon, Chief Financial Officer Barry McCarthy said on Wednesday.

One major reason, he said, is that watching movies over the Internet is not yet easy, so Netflix can keep customers happy with the simple DVDs-by-mail technology while Web delivery improves.

"Download services right now have limited value. As long as it's a marginal product because of limited content or because you're limited to PC to watch it, it's difficult for stand-alone services to compete with Netflix," he said.

In addition to its core mail-order DVD business, Netflix, with 7.5 million subscribers, lets subscribers watch movies via the Web on PCs and also plans to roll out a set-top box with LG Electronics Inc this year to let subscribers watch films streamed from the Web to TVs.

The promise of increased Web video viewing has lured companies like Apple Inc and Amazon.com Inc into the sector, but analysts expect it will be five to 10 years before that market really takes off.

McCarthy said Netflix will announce more alliances like its LG partnership, but declined to provide details.

"We'd like to be on as many platforms as possible. If you buy an electronic platform and you're able to access Netflix content on your TV because it's on that set-top box, that's great," he said.

Netflix has surveyed its subscribers for interest in streaming movies to TVs using Microsoft Corp's Xbox 360, but McCarthy described it as "research" rather than signaling a soon-to-be announced partnership.