Netflix Committed to Bow Download Service This Year24 Feb, 2005 By: Erik Gruenwedel
Online rental pioneer Netflix today reiterated plans to offer movie downloads sometime this year.
Speaking at a technology symposium in Phoenix, CFO Barry McCarthy said the company continues to spend from 1 percent to 2 percent of revenue developing a download format.
McCarthy said the company is interested in combining its download technology with TiVo set-top boxes.
“The way you offer a compelling service is to have broad consumer appeal,” McCarthy said. “TiVo may be one of those systems.”
Reluctance on the part of the studios to offer content, coupled with an unknown cost of that content, pricing to consumers and other concerns, led McCarthy to concede that the rate of growth for downloads would be a long time coming.
“One of the ways you answer these questions is by putting product on the market,” McCarthy said. “It will be something small, and will begin the process of learning.”