Okay so how do these guys (NetFlix) make any money? - Canadian TV, Computing and Home Theatre Forums

hugh · 2002-06-20, 12:49 PM

so I'm reading this article about Netflix that rents DVD's via mail.

Netflix charges customers $19.95 per month for a subscription that allows them to choose movies online and have them shipped out via first-class mail. Subscribers return the DVDs using enclosed mailers. There are no late fees. Customers can rent as many movies as they want during a month but can only have three movies out at a given time.

Apparently they went IPO last month and raised 82.5 million US.

How do you make money, I mean shipping the DVD's back and forth has gotta cost a fair bit of dough. What am I missing?

2002-06-20, 12:49 PM	#1
hugh Member #1 Join Date: Dec 2001 Location: Toronto Posts: 47,492	Okay so how do these guys (NetFlix) make any money? so I'm reading this article about Netflix that rents DVD's via mail. Netflix charges customers $19.95 per month for a subscription that allows them to choose movies online and have them shipped out via first-class mail. Subscribers return the DVDs using enclosed mailers. There are no late fees. Customers can rent as many movies as they want during a month but can only have three movies out at a given time. Apparently they went IPO last month and raised 82.5 million US. How do you make money, I mean shipping the DVD's back and forth has gotta cost a fair bit of dough. What am I missing?

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