Is There A Catch To Netflix?!

Is There A Catch To Netflix?

I keep seeing the advertisements on these pages.. so I checked it out.

How can netflix afford to rent out dvd's for 4 bucks a month when they pay shipping and handling both ways, and its first class to boot.

How are they making their profit?

Are there hidden charges that I am not aware of?

2 weeks ago
First person says You can olny rent 4 movies per month.. is that true with ALL their plans? Or just the 4 dollar a month one?

I've been an average Netflix user for 2 years.

There is not a catch. Netflix is a pretty good deal overall I think. The number of movies you rent depends on the plan you set up and pay for. I have a 4 movies at a time plan. That means I can have four seperate movies out and I can change movies as much as I want. For example, pretend I picked the first season of The Sapranos. They would ship my the first four discs in that season. After I had watched the first disc I could send that one back straight away and in about 3 days have the next disc in the series. This is really great because if there is one movie you want to keep for a while there is not reason you can't. I once kept the same movie for 6 months, watched it, loaned it to friends, and finally sent it back. No problems.

Also the turnaround time is pretty good. If I get it in the out going mail on day 1 then on day 3 the next disc arrives. This will depend on how close a Netflix warehouse is etc.

They make money because people don't watch that many movies. My plan cost around $24 per month. I imagine it cost them about 50 cents to ship each movie. That means I'd have to watch 48 movies in a month. Obvisously they have other costs too, but I have no way to estimate those. I'm sure they make money through advertisements and other methods, like their new download/streaming features and their Blueray HD DVD offerings.