Netflix Download Service Postponed

Netflix on Wednesday said that its planned movie download service is on hold indefinitely due to licensing problems with Hollywood studios. Word of a possible download service first leaked out in July when a glitch in the Netflix system revealed that the company was planning to offer online movies.

Netflix CEO Reed Hastings made the announcement during a conference call with analysts. "When the content climate begins to thaw," the service will be launched, Hastings said. Work is continuing on the necessary infrastructure in order to make a launch possible, but Hastings did not specify how movies would be delivered.

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