The system, which cost forty million dollars to develop, is designed to adjust the picture’s resolution based on the bandwidth so the movie doesn’t freeze during play. Online distribution could save Netflix the costs of distributing DVDs by mail. Netflix has contracted for additional movie and television programming that will add to its offerings.
Netflix Launches Online Movie Feature
Netflix is unveiling an online movie delivery service, which will allow subscribers to watch about 1000 DVD-quality movies and television shows on their computers at no additional charge. It is not the first organization to offer online videos, but Netflix has six million or so subscribers to patronize the service.