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Netflix (NSDQ: NFLX), which has been experimenting with making its online movie service unlimited with a few users, is now expanding it to everyone starting Monday, a day before Apple (NSDQ: AAPL) is supposed to make some major announcements about its new online movie rental service. AP reports the unlimited viewing will start tomorrow, doing away with its quota/hours system for Netflix subscribers based on their pricing tier-level. Only the lowest tier of Netflix customers who pay $4.99 to rent up to two DVDs per month won’t be provided unlimited access to the streaming service. For now, the online streaming library has more than 6,000 titles, small compared to the overall 90,000 titles in its DVD collection.
Netflix had been experimenting with the unlimited viewing service with select subscribers for a month now. This unlimited streaming option would become more relevant after Netflix-*LG* branded set-top TV box launches later this year…the plans for it were announced start of this month.
Also, AP says this unlimited streaming option could erode Netflix’s profits because it isn’t raising its monthly rates even though its expenses may rise if increased usage drives up the licensing fees owed to studios.