On the Call: Netflix CEO Reed Hastings

AP News
Posted: Oct 20, 2010 8:58 PM
On the Call: Netflix CEO Reed Hastings

Netflix Inc. expects its 16.9 million subscribers to watch more video through Internet streaming than on DVD players at some point in the current quarter.

But that milestone doesn't mean Netflix is considering closing any of the 58 distribution centers that mail out more than 2 million DVDs per day.

Netflix CEO Reed Hastings addressed the fate of Netflix's DVD distribution centers Wednesday in response to question on the company's third-quarter earnings call.

QUESTION: What are you doing differently in terms of distribution centers as you prepare for overall (DVD) shipments to decline? I know you are focused on automation and efficiency. But do you have broader plans on how you ultimately scale back over time?

RESPONSE: Nationwide, our DVD shipments are still growing. About 10 percent year over year. Right now, we are trying to figure out how to handle the increased load. Some day we'll have to think about the issues you referred to, but not in the near term.