Netflix today announced they'll be lifting download limits for their broadband video download service. Previously, customers could download as many hours as their service tier cost -- for example a customer on the company's $16.99 plan could download seventeen hours worth of broadband video per month. Starting today, customers can now stream as many films and shows as they want each month. Only customers on the $4.99 tier (two DVDs per month) won't be provided unlimited downloads. The change could prove costly:

Letting subscribers stream as much as they want could erode Netflix's profits because the Los Gatos-based company isn't raising its monthly rates even though its expenses may rise if increased usage drives up the licensing fees owed to studios.

The company says they've spent about $40 million on the streaming service in the last year, and has also been striking deals with hardware vendors as part of an effort to integrate Netflix service into set-top boxes and televisions.

SOURCE: http://news.yahoo.com/s/ap/20080113/...imited_netflix