Netflix Starts Offering Flicks On The Net

Beginning this week, some subscribers to DVD-by-mail service Netflix will be able to watch movies and TV shows on the Web. Netflix Inc. will start showing movies and TV episodes over the Internet this week, providing its subscribers with more instant gratification as the DVD-by-mail service prepares for a looming technology shift threatening its survival.

The Los Gatos-based company plans to unveil the new "Watch Now" feature Tuesday, but only a small number of its more than 6 million subscribers will get immediate access to the service, which is being offered at no additional charge.

Netflix expects to introduce the instant viewing system to about 250,000 more subscribers each week through June to ensure its computers can cope with the increased demand.