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Boost in Holiday DVD Sales Pushes Netflix Over 500,000-Subscribers

Time: 05:49 EST/10:49 GMT | News Source: Yahoo News | Posted By: Matthew Sabean

Netflix (www.netflix.com), the world's largest online DVD rental service, today announced that the company has surpassed the 500,000 subscriber milestone. Netflix believes the increase is primarily due to the large volume of DVD players -- more than 3.6 million units(1)(2) -- that were shipped over the 2001 holiday season. Netflix, which launched its subscription rental service in 1999, allows movie fans to rent as many DVDs as they want for $20 a month, with up to three movies out at a time. Subscribers simply create a list of movies they want to see at www.netflix.com and the DVDs are delivered via the U.S. Postal Service in postage-paid mailers. As each movie is returned, Netflix automatically mails out the next available title on the subscriber's list. Over the past two years, the company has steadily grown its subscriber base in large part by relying on its enthusiastic customers to tell their friends and family who have just bought DVD players about the service.

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