Netflix chief executive officer predicted in a Tuesday report that DVD rentals at his service will begin to decline at least four years from now as Internet deliveries of movies grow, according to the Wall Street Journal.
Reed Hastings, currently leading the company, also said he is considering expansion opportunities outside the U.S. but has no current plans to open kiosks, such as Coinstar, Inc’s Redbox, the report states.
In the article he uses the example of America Online as a company which failed to adapt to a new business environment by failing to make the transition from providing dial-up Internet access to broadband delivery.
“Every day, I wake up with that fear,” he says in the report.
He predicted the company will continue rent discs twenty years from now but expects the rentals to begin declining in four to nine years. Hastings added he expects to pay more for licensing films as its Internet delivery service grows.
In terms of new product offerings, Hastings said the company would continue to offer only software and online services, according to the report. The company previously considered offering a set-top box that would deliver its service but in the end partnered with an independent hardware maker, providing software only.