Netflix delivers 2 billionth movie

A DVD rental from Netflix is seen against the company's website in Medford, Massachusetts in this July 25, 2008 file photo.

LOS ANGELES (Reuters) - Netflix Inc on Thursday said it delivered its two billionth movie and gave the lucky recipient of the milestone DVD a complimentary lifetime membership.

Netflix said it hit the 2-billion mark on Wednesday when a Blu-ray version of "Nick and Norah's Infinite Playlist" was delivered to Clay Shannon, a Netflix subscriber in Birmingham, Ala., from the company's distribution center in Atlanta.

Netflix, launched in late 1999, now serves more than 10 million subscribers and ships about two million of its trademark red mailers per day from 58 distribution centers across the United States.

The company's DVD library spans more than 100,000 titles, including more than 1,300 that are available in high-definition on Blu-ray.

Earlier this week, Netflix said it will raise prices about 20 percent for subscribers who rent Blu-ray discs rather than standard DVDs.

The new prices go into effect on or after April 27, the company told subscribers in an email. Prices for standard definition service will remain the same, the company said.

Netflix members can disable the Blu-ray preference on their online accounts to avoid the price increase and receive standard definition DVDs, the company said.

The price increase comes as nearly 10 percent of Netflix's 10 million-plus subscribers have switched to the "substantially more expensive" Blu-ray discs, the company said.

Netflix said it will use the additional revenue to add to its selection of more than 1,300 Blu-ray titles and to keep up with costs associated with the growing Blu-ray contingent."

(Reporting by Susan Zeidler; editing by Carol Bishopric)