In a letter to shareholders, Netflix CEO Reed Hastings shared ten reasons Internet TV will grow quickly over the next few years. He predicted:

Eventually, as linear TV is viewed less, the spectrum it now uses on cable and fiber will be reallocated to expanding data transmission. Satellite TV subscribers will be fewer, and mostly be in places where high-speed Internet (cable or fiber) is not available. The importance of high-speed Internet will increase.

We’ve collected his ten reasons below, a fascinating look at the way infrastructure and apps will evolve over the next few years. You should read his complete letter for more details.

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The CEO of Netflix posted an apology letter on the Netflix blog last night where he explained why Netflix had started charging more for the same service it had always provided.

As he saw it, the DVD and streaming services were growing more and more into 2 separate services that needed to be run independently. The first step was to split the fees, which is why the base price went up from $10 to $16. And the next step is to completely split the services into 2 companies.

DVDs are going to be spun out into Qwikster, a new company. If you currently have a combined DVD and streaming service from Netflix, one of the services will be moved over and you’ll see 2 charges on your credit bill.

The search function, queues, and everything else that you might use to find movies to watch will also be split between the 2 sites. This means it will be a lot harder for someone to find a DVD and then check to see if it’s available for instant viewing.

Speaking as a Netflix customer, this is truly an unfortunate move on the part of Netflix management. It was bad enough that they foisted a 60% price hike on me a few weeks ago, but now they want to split the service into 2 websites?  I have to wonder why they decided to make the service less convenient and more expensive at the same time.  One has to wonder if this is an attempt to kill the company, because it’s clearly not designed to please customers.

Nintendo and Netflix are rolling out a new app today which will let any Netflix subscriber watch videos on a Nintendo 3DS.

It’s expected to show up momentarily in Nintendo’s eShop, but since Netflix is limited to US and Canada at the moment anyone outside the region might not see it. The videos are still2D, of course; Netflix doesn’t stock any 3D videos in its streaming library.

Netflix seems to have beaten all the major ebookstores to the punch with this app. Say what you will about gaming handhelds,but they are still a sizable part of the gadget market. Isn’t it about time that Amazon, B&N, et al. notice this and start thinking about reading apps?

I don’t think it’s so absurd. People are already reading on smartphones with 3″ and 4″ screens. Size clearly is not an issue.

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The info that leaked a couple days ago is true; Netflix will be offering new, cheaper plans.

Netflix announced today that its new plans would start at $8 a month. The price was lowered because this plan, which includes unlimited rentals with 1 disc out at a time, no longer includes the streaming video offered by Netflix. If new subscribers want both options then they will have to order 2 different plans. The streaming video will now be offered by itself at $8 a month.

“Netflix members love watching instantly, but we’ve come to recognize there is still a very large continuing demand for DVDs by mail,” said Andy Rendich, Netflix Chief Service and Operations Officer. “By better reflecting the underlying costs and offering our lowest prices ever for unlimited DVD, we hope to provide a great value to our current and future DVD-by-mail members.”

The new rates are being offered now, and existing subscribers will be switched over on September 1st.

Netflix announced today that it would soon habla espanol.

It plans to expand service later this year and provide streaming video options in South America and the Caribbean. Netflix members will be able to instantly watch an array of US, local and global TV shows and movies on their TVs as well as on PCs, Macs and mobile devices.

Language support will also be expanded to include Spanish and Portuguese. Netflix had launched the service in Canada last year and it is part of company’s plans to expand internationally.

There’s no mention that Netflix will offer DVD shipping in these countries, though, nor did Netflix say how much the service will cost. Given the difference in socio-economics in Netflix’s new market, the pricing differential will be interesting. A large market penetration could require a lower price point than in the US, and that disparity might anger US customers.

TI has has announced that its OMAP4 CPU, its latest generation SoC platform, has been approved by Netflix for the 1080p HD streaming video. This appears to be the first time that a mobile platform has been approved.

“Netflix already has a rich heritage of streaming to PCs, Macs, game consoles, Internet-connected TVs,  iPhone and iPad, and many set-top-boxes, so we sought a semiconductor partner that could bring our service to the broader mobile environment smoothly and securely,” said Bill Holmes, Vice President Business Development, Netflix. “TI’s OMAP architecture and M-Shield security will set the stage for a high-performance, low-power, secure platform that will help Netflix members instantly watch unlimited TV shows and movies on Android devices.”

This is great news for Android owners. If you ‘re like me, you’ve been watching as support for Android was added 1 device at a time, waiting in agony for your phone to be added. even with the hackers working on adding less-than-authorized support, the delay has been frustrating. Hopefully this certification will mean that all (or at least most) phones running on a TI OMAPs CPU will soon be able to use the Netflix Android app.