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The Internet Businesses Entertainment Technology

Mail Service Costs Netflix 20x More Than Streaming 473

Jake writes "Netflix currently pays up to $1 per DVD mailed round trip, and the company mails about 2 million DVDs per day. By comparison, the company pays 5 cents to stream the same movie. In other words, the company pays 20 times more in postage per movie than it does in bandwidth. Doing some simple math, Netflix is spending some $700 million per year in physical disk postage. Rising content prices are offset by declining postage fees for the company, as more and more users choose the streaming-only option. Furthermore, subscriber revenues will continue to increase as Netflix increases the size of its streaming library."
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Mail Service Costs Netflix 20x More Than Streaming

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  • Re:Duh? (Score:4, Funny)

    by NFN_NLN ( 633283 ) on Wednesday January 19, 2011 @04:44PM (#34932068)

    Or the very large arrays some make to backup their BluRay collection.

    Pfft. That's nothing compared to my Peta-byte storage array.

    ~$ df -h

    Filesystem Size Used Avail Use% Mounted on
    /dev/sda1 680G 5.8G 640G 1% /
    /dev/md0 44P 13P 32P 29% /mnt/sys

Happiness is twin floppies.

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