nthly subscription fees include options of streaming TV and movies, and DVD rentals. Figure 3-1 presents a comparison of Netflix against other pay-TV providers. By 2010, Netflix customers watched more content via streaming than on DVDs. In 2011, Netflix announced the availability of a lower-priced, streaming-only service and an extra fee to receive DVDs by mail. Previously, customers were automatically enrolled in both services. Netflix is promoting its streaming service-which avoids mailing and warehousing costs-prominently on its web site. Netflix had earlier expanded its streaming service to Canada in 2010 and to 43 countries in Latin America and the Caribbean in 2011. Although licensing rights for TV shows and movies in Latin America are low, broadband penetration there is low, and is saddled by high costs and slow speeds. However, the region does have a large and growing population. In the absence of wired broadband, some customers with tab- let computers and smartphones might choose to stream directly to these devices over mobile networks. In 2012, Netflix launched its streaming services in Ireland and the United Kingdom. Netflix Comcast DIRECTV Figure 3-1 A comparison of pay-TV providers in the United States. (Courtesy MediaCensus © MediaBiz 2011) Appendix Netflix and other streaming services face competition from one another as well as from cable TV operators, telephone companies, and satellite TV operators, all offering video on demand. In addition, Netflix faces rising costs, primarily for licensing fees for content as well as the unavailability of particular entertainment. Studios not owned by cable TV operators or other competitors now view streaming by Internet-based companies as sources for revenue growth. The broadband wired and mobile providers controlling access to the vast majority of customers are also starting to demand monthly fees for carrying streamed traffic. Showtime (a division of CBS Corporation), which offers streaming in competition with Netflix, announced in 2011 that it would no lon