Nintendo is bringing Netflix’s online streaming video service to its Wii gaming console, the most popular in the industry, the companies plan to announce Wednesday. The service lets subscribers choose from a catalog of generally older movies and television shows and watch them instantly.
Mr. Hastings says the size of the streaming catalog correlates to the size of the checks it can write to Hollywood studios. So as Netflix adds customers — and cuts costs — it can gradually expand the catalog. Analysts say they believe it costs Netflix about 5 cents to stream a movie online, versus 60 cents to mail a disc to and from a customer.
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