Reply to Re: Netflix Throttling

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Posted by Bob on 01/12/39 11:39

On Thu, 09 Feb 2006 01:06:29 -0600, none <none@none.com> wrote:

>They have to make a profit. The more they send you the more their expenses
>are. The postage and envelopes cost money and the licenses cost money.
>Also lost and broken DVDs cost them money. They are not going to send
>you broken DVD's on purpose. They should just be honest and say there is a
>limit. They aren't going to send you DVDs as fast as possible and then go
>bankrupt because expenses were too high. I also experienced very good
>service the first 2 months and then they slowed down. This is probably a
>stupid plan because people get mad when they get reduced to the real deal.

Your business logic is basically correct but I think you are leaving
out one factor - people do not like to be throttled and quit. The
question is how much impact does that have compared to just sending
the discs out.


--

"It has been said that politics is the second oldest profession.
I have learned that it bears a striking resemblance to the first."
--Ronald Reagan

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