Netflix may add a streaming service in the United States this year, as it expands its reach in the digital market. The company is currently offering a by-mail DVD rental serviin the U.S. and a streaming-only service in Canada, where users pay to watch video instantly off the Internet.

"Three years ago we were a DVD-by-mail company that offered some streaming" Chief Executive Officer Reed Hastings was quoted to say by Reuters. "We are now a streaming company, which also offers DVD-by-mail."

"Pure streaming could become Netflix's core offering in the U.S., with discs being offered as a supplement for an additional charge," Hastings added.

Netflix competes against companies like Hulu Plus, Redbox, which is soon launching a streaming service, and Google. Amazon.com has also considered an online video subscription service.

Last month, Apple said it would add Netflix's streaming service to a new version of Apple TV.