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Netflix Inc. (NFLX) is "looking at the possibility" of letting customers get their videos delivered to them only over the Internet, according to a person familiar with the company's plans.

To that end, the Los Gatos, Calif.-based company recently surveyed subscribers about spending $9.99 a month for an Internet streaming-only service, the person said.

The moves are the most brazen yet from Netflix to break its 10 million subscribers of their DVD viewing habits now that faster Internet connections make watching Internet videos much more palatable.

Netflix benefits because a significant portion of its operating expenses go towards delivering DVDs, and its profit margin can swing wildly because of an increase in postal rates. Meanwhile, it's increasingly competing with Apple Inc.'s (AAPL) iTunes and other Internet video providers.

It's ongoing focus on Internet delivery means "Netflix controls its own destiny," Wedbush Morgan Securities analyst Edward Woo noted in late January, after Netflix reported fourth-quarter profits and subscriber gains above expectations.

But at the same time, there's a large initial investment - about $75 million in 2008, and another $100 million in 2009- required to build up the necessary IT infrastructure.

Netflix shares are down 3.4% at $35.55.

-By Ben Charny; Dow Jones Newswires; 415-765-8230; ben.charny@dowjones.com