• Reuters, Friday, October 22, 2010 12:13 AM

Netflix, a by-mail DVD rental service, may add a streaming-only service in the United States this year, as it expands its reach in the digital market. Shares in Netflix jumped more than 9% after it posted better-than-expected third-quarter subscriber growth. "Pure streaming could become Netflix's core offering in the U.S., with discs being offered as a supplement for an additional charge," CEO Reed Hastings said.

Concerns persist now about the rising cost of paying studios to stream more movies and TV shows, amid intensifying competition and lofty-looking share valuations. Netflix has paid a big price to provide content through partnerships with EPIX pay TV channel, estimated at $1 billion, and NBC Universal, a unit of General Electric Co.

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