As we know, Netflix.com stands on top of the online video rental industry. Using U.S. monthly unique visitors as a proxy for subscriber-base, and thus overall success, Netflix currently doubles the closest contender, Blockbuster.com.

However, when you are atop any e-commerce industry you cannot become complacent. The second you loose your innovative edge you will become obsolete like the ’07 Yankees (oh snap!).

Back in January, Netflix released its Watch Now feature allowing subscribers to stream full-length movies and TV shows on their PCs. The service is offered free to existing Netflix members. The online on demand concept was certainly not invented by Netflix and there are plenty other players in the game. The space includes established sites like Vongo.com and Cinemanow.com, as well as new comers like Amazon.com’s Unbox. A look at the amount of people visiting these services shows that Netflix’s Watch Now has quickly grown into an industry leader.

*Cinemanow.com and Vongo.com are domain level counts. Netflix.com and Amazon.com counts are for the specific Watch Now or Unbox pages, respectively.

The executives at Netflix know that DVD’s will not be around forever. Being an early adopter to any new viewing formats will certainly help the company remain the king of the online movie business.

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