Online video rental service Netflix says it is nearing 2 million subscribers.

Online video rental service Netflix says it is nearing 2 million subscribers.

According to a first-quarter report, Netflix has a subscriber base of more than 1.93 million, an increase of 84% from the 1.052 million subscribers the service had in the first quarter of 2003. Subscriptions have grown 30% over totals from 2003's fourth quarter.

Netflix says the subscriber growth was linked to the debut of its first TV ads at the end of 2003.

The company predicts that by the end of 2006, 5 million people (5% of U.S. households) will subscribe to the service.