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Will Netflix Be the Digital Distributor

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Netflix (Nasdaq: NFLX), the online DVD rental company, fancies itself as the online distributor of movies, when digital distribution of movies via high speed Internet services takes off. “Today, 100 percent of U.S. households have postal delivery and very few have broadband. If that ever changed, which might happen in five or 15 years, then we’d look at other cost effective distribution mechanisms such as broadband, but there will always be a substantial part of the country reachable only by mail,” said CEO Reed Hastings. That puts it in direct competition with movie studios’ own plans, other players like Intertainer, and possibly in the future, RealNetworks.