|2002-06-20, 01:49 PM||#1|
Join Date: Dec 2001
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?