Despite the current state of the economy, Netflix saw its revenue up by 24% in the last quarter.
During the same time period Netflix added over half a million subscribers.
Netflix is currently in talks with movie studios regarding possibly creating a "sale only" period after a DVD's initial release. During this window of time DVDs would not be available for rental.
DVD sales have been steadily dropping. Netflix CEO Reed Hastings apparently sees a "sale only" period as a possible win-win which would strengthen the struggling DVD business while Netflix would receive more attractive rates for the movies it purchases to rent to its customers.