http://www.businessweek.com/technology/content/sep2006/tc20060912_683240.htm?chan=search
Don't Nix Netflix Just Yet
Apple's expected announcement of a movie-download service has many wondering what the DVD-by-mail provider has planned

After Netflix started its online DVD rental business a few years ago many companies have tried to enter the market and take the market share from Netflix. Apple is one competition that offers movies to be downloaded through iTunes. This approach is different then Netflix who mails actual DVDs to customers instead of just allowing them to download the movie. Although Netflix says that the actual DVD will remain the norm, they do see this growth of downloading movies. Netflix plans on offering down loadable movies on top of their mailing DVD rentals.

The problems with downloading movies is the piracy problem. When music was first be able to be downloaded there was many problems with people "stealing" music over the Internet. The same problem occurs with downloading movies. In this article they mention how un named hackers have admitted to watching movies longer then they paid for and sending the movies to others not paying at all.

This type of E-commerce that Reed Hastings, CEO and founder of Netflix, has came up with was thought to have many problems when entering a market facing huge names like Wal-Mart and Blockbuster. Although from the start of his business venture to now Netflix has always been faced with negativing, but with revenues of $800 million in this market Hastings has done a great job and plans to remain the on top of the online rental DVD market.