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@Huge Loser, are you suggesting the postal service should somehow limit the amount of junk mail you get and that would help their bottom line? You're wrong. Junk mail is a significant source of revenue for the USPS and delivering it helps subsidize the first class mail. The USPS reducing the number of days it delivers mail absolutely would have an affect on Netflix. It is the same for the online streaming part of their business. No broadband Internet service, or low monthly caps, means Netflix sells less of their product to those people. Less USPS mail service means they sell less of their product. If customers get fewer DVDs per month then the service is worth less to them.
Legalities aside, if Zediva was actually doing what they claimed and one DVD and DVD player could only be in use by one customer at a time I don't think they could do it on a large enough scale to make a profit. The court decision says: Defendants describe their service as allowing customers to “rent” a particular DVD and DVD player for 14 days. However, Defendants’ customers do not have access to or control over a specific DVD or DVD player. Instead, Defendants stream the content of the DVD to a customer for a maximum period of four hours, provided that the customer does not pause it for more than one hour during that time. After four hours of total “rental” time or an hour-long pause, whichever occurs first, Defendants use the DVD player containing he same DVD to transmit the Copyrighted Work to a different customer. When the first customer makes a request to resume viewing, the transmission may be sent from a different DVD or a different DVD player than the one originally used to transmit the Copyrighted Work in the earlier “rental” period. According to their website, if all of the copies of a particular Copyrighted Work are “rented out” when a customer wants to view it, that customer “can request to be notified, via email, when it becomes available.”
@Daniel Trogdon and Art Artistry, you are exactly right. People keep throwing around that 60% figure like it was an absolute when in reality it was the extreme maximum. I think some of the people here aren't Netflix subscribers and are making comments based solely on news stories they've read. My bill for 3 DVDs at a time with streaming would have increased 20%. It wasn't worth it to me, so I exercised my right as a consumer and dropped streaming. Now my bill DROPPED by 20%. I didn't have that option before Netflix separating their DVD and streaming services. is now following The Typepad Team
Jul 12, 2011