New rumors: Netflix to kill off DVD rentals, European launch next year

Netflix has become a constant in the headlines over the past few weeks, though not always due to unanimously approved business acumen. Recently, the DVD rental and instant streaming giant's decisions have mainly just angered people. Love it or hate it, Netflix is here to stay - a fact underscored by more rumblings about its long-rumored European launch.

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Entertainment news publication Variety alleged that Netflix bigwigs spoke recently with several executives at European movie distribution firms about bringing the service, which boasts over 23 million members in the U.S. and Canada, across the pond in early 2012. Specifically, the insiders claimed Spain and the U.K. will be the first two countries privy to the constantly expanding company. The move would follow last year's Canadian expansion and an upcoming Latin American roll-out tentatively scheduled for late 2011.

While some strong competition already exists in the UK, Home Media Magazine pointed out that Spain is a much easier gamble for Netflix since its eventual release in Latin America could be easily transferred there. The publication also cited Richard Greenfield, an analyst with BTIG Research, who claimed that despite recent comments to the contrary Netflix may soon end its DVD rental service. Jessie Becker, Netflix's Vice President of Marketing, said last week during the price hike's announcement that there was a "very large continuing demand for DVDs" and that a new team was created to manage the physical media rental branch of its business. However, splitting the previously bundled DVD rental/instant streaming deal into two distinct yet similarly priced packages is cause for alarm; unlimited streaming is arguably the better option when compared to one-at-a-time DVD rentals via snail mail. Further fueling the belief that its physical media rental service is on its death bed was a June announcement at the company's Tech Blog that Open API features for DVDs would be discontinued by the end of 2011.

The company has also made various inroads with its streaming service over the past few years - expanding to all three current video game consoles. A new app now available for the handheld Nintendo 3DS gaming system allows Netflix members to link their accounts to the device and watch movies on the go.

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Blockbuster, though currently struggling through its own hardships, has come out swinging - offering current Netflix subscribers a free trial of its own DVD rental service, Total Access. The former rental leader is seeking to capitalize on negative reactions over some controversial changes made by Netflix during the past two months, specifically the price increase.

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