Quote:
Originally Posted by anabolina
That is true, Netflix has to keep in business, and I could swear I heard somewhere that the streaming portion was running at a loss so it's understandable that they'll charge more for it and the cost for the 1 DVD at a time is reasonable. In a way it's good they're doing this. I've have the 1 DVD thing since joining last October and have had 5 DVDs shipped to me since then. Which works out to $4 for each rental which is reasonable since none of the DVDs would have been in Redbox or Blockbuster stores (based on $2 more each month for the DVD vs Streaming only).
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I'm not sure that they are losing money with streaming since NF is actually trying to move to that model since mailing discs and having that large of a distribution center is whats hurting their bottom line. everytime you return a disc they are losing money. with streaming its all digital and you cut down on mailing cost and actually people. all you need are a bunch of IT geeks, server farms across the country and a few cust serv reps at home emailing folks back with their questions......
the amount of overhead with mailing dvd is tremendous.