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Batgirl I agree with you.
Just to add to it: equivalent for reasonably priced "out-of-district" cards for local residents are part of their taxes. so both in-district and out-of-district patrons pay. if netflix was able to grab a chunk of our taxes it could also be free. So the fact that there's no money exchange happening at the time of checkout doesn't mean that it's free.
As far as Mr Sargent's question on business model, perhaps he should take a closer look at founders of google - they practically became billionaires overnight by giving things away for free.
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