Broomstick wrote:Nope, because Netflix still offers a DVD-by-mail service. In fact, last I checked there is still a greater array of choices for their by-mail service than for their broadband.
Sorry to nitpick, but this is near solely due to legal differences between streaming and DVD rental. Besides selling "Rental DVDs" for inflated prices, studios have no way to control how many people you rent a given disk out to or how much you charge to do so. But, and this is the important bit: no one can stop Netflix (at least from what I know) from renting out physical copies of their movie, TV show, etc or for how long. You're only limited by the life of the physical disc and getting a new one is as simple as buying it.
However, streaming (as AFAIK, is not covered by laws regarding either physical copies nor syndication) requires Netflix to constantly renegotiate and haggle with studios for the ability to stream X content for Y amount of time and there's certain things they will just never get for streaming. Like, I doubt you'd ever see Game of Thrones on Netflix while HBO has their own streaming app.
The DVD market continues to shrink, but I won't argue that the market would totally die considering how many Americans are stuck with shit Internet. However, Netflix would shut the system down due to lack of profits likely far before it was totally dead. I think out of 100 million subs, like 4 mil use the mail system.
It's profitable for them, but they could cut it right now and not lose a whole lot.