With the customers becoming increasingly eager to watch videos via the Internet, Netflix recently announced its latest strategy shift in the direction of online only streaming video service.

According to a new plan that Netflix announced on Monday, the company will rely solely on video streamed over the Internet instead of the DVDs that it has been mailing to customers ever since the company came into being, over a decade back.

The shift announced by Netflix – which is already offering a streaming-only subscription to its customers in Canada - clearly underscores the fact that the customers have rapidly been transitioning from physical media players to digital entertainment which can be browsed, viewed again, or disposed of without having to handle a disk.

Noting that Netflix will keep its customers satisfied by spending more on licensing streaming content this quarter than on purchasing DVDs, the company pointed out that, already, more and more of its members prefer watching new content streamed over the Internet than on DVDs.

During the third quarter, Netflix’s expenditure on content streaming rights stood at $115 million, as against the year before spending of a mere $10 million. At the same time, the company’s spending on DVDs plunged
35 percent to less than $30 million.

In a statement pertaining to Netflix’s shift towards online only video streaming service, the company’s CEO Reed Hastings said in a statement: “We are now primarily a streaming video company.”