Quote:
Originally Posted by markbot
netflix has to pay for the dvds only once...then can rent them out as much as they want. for the digital streaming library they need to pay a fee for the rights, which last the length on the contract.
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Alsol add in that the DVDs cost money to replace when they are damaged, and the have a postal expense every time they are rented. So there are recurring costs with each, just different ones.