[john_flintstone]

>This is known as the "Blockbuster Video" model for treating customers for being late. How did that model work out for them?

It worked fine until their industry (renting videos and DVDs) dwindled to nothing. Blockbuster's demise had nothing to do with late fees.

[TylerE]

Really? Besides the selection, I think Netflix's keep-it-as-long-as-you-want policy was a big reason it took off.

[jamesbritt]

They're also charging your credit card each month. There's no notion of late fees because you're paying all the time.

[TylerE]

True, but that's ok.

The real boon to the netflix model is that it doesn't make you consider individual decisions financially. Once you're on the service, deciding to see something, or keep it longer, or whatever, doesn't have financial implications, so you don't even think about it.

[jamesbritt]

Once you're on the service, deciding to see something, or keep it longer, or whatever, doesn't have financial implications, so you don't even think about it.

Well, it does, though maybe people don't think about it. It's the "health club membership" model. Pay for stuff you don't use.

Just like people figure out they never go to the gym, at some point though some people (such as myself) realize, hey I'm paying each month for Netflix but I don't bother getting new movies (or get anything I really care for), so why not cancel and go for the a la carte Redbox.

[rmc]

Don't forget that you can pirate all the films on the internet. That'll have an effect.