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Old 08-16-2017, 07:34 AM  
celandina
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Join Date: Jun 2006
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When I did read the "headline" I thought: " hey like when Netflix started", then I read the post itself and see that it is run by former Netflix executive...

....it is the exactly same model....

In its inception Netflix charged $ 9.95 and you could rent as many DVDs you wanted. Max 3 on one rental....with 3 day shipping and 3 day watching, one could rent about 12 to 15 DVDs/month and Netflix was loosing money. But as the "cheap deal" became known, everybody bought the package and Netflix was loosing even more money.....

Was it a bad business model ??? It appeared so but the Netflix folks knew better....

After a while the novelty did wear off and the 15 x a month rental guy, become 7 x a month, then 2 x and after a while it went down to 0 x month, yet the monthly fee was so low that very few subscribers cancelled. At this height of DVD rental craziness, where almost nobody rented anything, Netflix had about 10,000,000 subscribers... Grossing 100,000,000 month.

This guy wants to do the same thing 20 years later with a movie tickets....
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