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Netflix Woes Could Be Offset By New Tricks

One could be excused for getting pessimistic about Netflix's future right now. The company recently announced it did not meet its subscriber numbers for the third quarter, and then lowered its subscriber estimates for the fourth quarter.

But Netflix has a few tricks up its sleeve. The company this week notified customers that it will charge an extra $1 per month for the ability to watch Blu-ray videos -- an option they must opt-out of if they don't want to participate. Analysts say that because most subscribers probably won't opt out, the move could generate an extra $25 million in revenues.

Netflix's partnership with Microsoft is also about to bear fruit. Their joint "Watch Instantly" service, which provides movies via streaming video, could help add 1 million new subscribers by the end of 2009.

Read the whole story at Forbes.com »

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