Blinds will mold. You need window film.

Even indoor outdoor fabric will mold if left folded up to collect water in a shower. Mold will, grow on anything if it's damp and doesn't have air circulation. A window IN ashower should have been obscure safety glass. The safety glass is code required. The obscure is community standards required. Unless you live in the boonies with no neighbors.

This company can basically do anything: http://www.draperinc.com/WindowShades/

They have a ton of open-weave synthetic fabrics or screening materials to choose from in just about any color you can imagine. (Frankly, I was surprised at how many colors these materials come in!)

Any time you put a blind or shade in an area with a large amount of moisture you will likely have issues over time. That being said curtain shades will function there for a certain period of time without any high risk of mold. Your best option is still probably window film. Check with your local budget blinds. We have both shades and window film options that would likely suite your needs. A composite wood blinds may function fine in that area for an extended period of time before mold becomes and issue. www.budgetblinds.com/

I would sugggest film and you may not have to place on top 1/3 of window, so you can still enjoy the view.

You could also have teak wood shutters made, leaving all but the uppermost slats or louvers in the closed position when showering! (Just be sure to specify marine-grade hardware (stainless steel).)

Here are some pics in case you're unfamiliar with teak used in wet applications:

Thanks for all the help! I was originally going to do the window film, but then anytime we have the window open, there is no privacy. Our window opens from the side. I thought faux wood blinds would be ok in the shower. Was just also hoping for something that is top down.

One idea..if you use the 2/3 film keeping window closed during showers, but if you add a shower curtain on this side of the stall and when window was open, you just closed the curtain.

While you're deciding on a permanent solution, I suggest hanging a cafe curtain on a tension rod. :-)

Oh, i think i might have an idea, now, yes it will mildew eventually, just like your shower curtain or liner does. but how about you make your own top down, as i was talking about, but use a good liner. Since you are not spending much, it won't hurt as bad if you have to do it again in a year or two.