Smart move by Netflix: It’s getting out of the used DVD business.
No surprise: As a revenue stream, selling used DVDs on its Web site was at best a side show compared to its core business of renting DVDs by mail.
We assume it’ll continue to sell its old inventory of no-longer-needed DVDs to wholesalers, which provide movies to DVD stores, street stands, etc.
Meanwhile, there’s no reason Netflix (NFLX) won’t outsource the “buy this DVD!” function on its Web site to a company like Amazon (AMZN) — which can use any boost it can get for its DVD business — in exchange for commissions.
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