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Netflix, Inc. Message Board

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  • Younessi Younessi Jan 15, 2004 9:06 AM Flag

    Distribution Center

    The dist centers do not cost as much as you think. They are a small places that handel shipping function, nothing more. Most of Netflix inventory is on shared revenue basis, so not much inventory cost. However, the faster they deliver dvds, the more heavy users they will have. Havey users add to the number of subscribers but lose money for the company. Not a great idea. That is why walmart hasn't built so many dist centers. Not becuase they couldn't affort them. Hopt that helps

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