Based on morningstar report, it only cost 60K to built a distribution center for netflix. But keep in mind, what is good for subscribers might not be good for netflix. The more distribution center, the more dvd usage, the higher the cost.
"The more distribution center, the more dvd usage, the higher the cost." There may be some truth to this on the margin, but as NFLX management knows from experience, three day turnaround makes for very happy customers, and they tell two friends and they tell two friends and so on and so on. In my case, my wife and I still watch about 5-6 movies per month. Having a choice always available at my fingertips hasn't made me watch more.
Nessie, I assume you have another sell order in at 60. It couldn't possibly go higher than that . . . . (P.S., pay no attention to the chart. Just use your intuition on NFLX's "true" value). Best of luck, and thanks again.