Netflix Delays Movie Download Service [Video Business]

Netflix said it is delaying plans to launch an Internet movie download service this year, due to limited movie content availability. The biggest obstacle to download services are exclusive agreements in place with pay TV outlets limiting the number of movies available for download online. Though Blockbuster recently warned of slowed subscriber growth, Netflix reported a 61% increase in subscriptions during Q3 – counting 3.6 million subscribers, after adding 396,000 subs in Q3. Netflix expects to close the year with between 4 million and 4.2 million subscribers, growing to 5.65 million subscribers in 2006.