I've got a sneaking suspicion that NFLX may have underestimated their potential success in selling used DVD's. I'm one of those who has never bought a DVD, or even considered it, although I own over 300 CD's. As a Netflix member, they sent me an email offering about 15 DVD's. I actually bought 2. My conclusion? If I bought, there have to be a hell of a lot more members who are going to jump at $10 for The Incredibles, etc.
The really interesting thing is that they have your ratings of the movies you have watched and 'know' what kind you like. No wasted marketing and can deliver a more targeted message to you. Blockbuster nor any of the other dvd retailers can do this since they don't have your historic preference data.
<<..they have your ratings of the movies you have watched and 'know' what kind you like.>>
That would seem logical, but I don't think they generated their list to custom fit my likes. I went back and counted that they offerd 29 DVD's, about 2/3 of which I didn't see or have on my queue. One of those offered I had given only 2 stars. I guess their selling queue is based on volume requests and unloading excessive inventory.