Hi
I am doing a project for University (Netflix business model), and i
have some questions:
First, how must a dvd cost to Netflix to own? (details plz)in other
words, what is their Direct Unit Cost per Dvd (or in general what is
the varialbe direct unit cost per Dvd for a Rental DVD store?)
Second,From where they "buy" their dvds( from studios), do they pay
them royalties per dvd rental or do they buy them, and if there is a
royalty system, how does the studios control it?
Second,i saw this http://answers.google.com/answers/threadview?id=476411
but in need more details about it, numbers of how much money netflix
make per dvd

Thanks

"Netflix pays on average $1.40 to the studio each time a new release
is sent to a subscriber's home"
"According to Fortune Small Business, these costs account for 20% of
subscription revenues"
**older movies and independant studio movies cost less than $1.40

http://www.olin.wustl.edu/workingpapers/pdf/2004-03-225.pdf
That's probably a good site for other information you'll need too.  It
describes how they make their DVDs also.

The shipping costs for Netflix seems to be in the $.30 each way range.
 But I can't find the exact amount anywhere.