With digital distribution growing, mail order rentals may soon be outdated
Netflix has a business model that’s not long for this world. The online video rental company depends on customers playing DVDs and sending them back and forth in the mail. But in the day of digital downloads, waiting by the mailbox will seem old-fashioned at best.
So Netflix is investing $5 million to $10 million — this year alone — in new technologies.
“It’s definitely part of a larger strategy,” said Paul Bond a writer for Hollywood Reporter. “Netflix — their bread and butter is delivering DVDs by US Mail. And they don’t plan on stopping that service anytime soon. They just plan on enhancing it.
