Netflix sell mail subscriptions and gives video over internet FREE as a bonus.
The Market seems to think Netflix is making money from "digital" when it is all a cost and if they try and switch to CHARGING for "digital" then customers will drop in waves as they have altered the DEAL.
Netflix makes 0 $ from digital.
Blockbuster makes $$ from digital.
No one is saying the margins are great.
Netflix is on a pump up to get bought by amazon but this hogwash about it being on many devices and having a great digital strategy and positioning is cow manure since the free video over the net si simply a goody to lure people to buy the by mail subscription.
Sorry motley fool and minianvil and all the other places paid to pump netflix and sour on blockbuster by whatever PR firm disney or netflix hired.
The truth is now out.
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