"i get about 9dvds/week, and 36dvds a month. $20 for 36dvds, good deal."

I also live in the Bay area where Netflix started up. Up until recently, I also always got a one day turnover, and under the 8 out at any time, reached a high of 60 DVDs in a month. First class bulk commercial mail is close to 30 cents each way, so 60 DVDs cost Netflix $36.00 in postage alone. Under the 8 out plan they got $43.35 including CA tax from me.

After they pay the huge Hollywood rental royalty per DVD, their brick and mortar costs, and employee labor, one can see Netflix can lose huge amounts of money on active members.

Netflix business model is based on customers being lazy, or wanting to keep the DVDs for many days if not a week to cut down on their postage costs.

Last month I started receiving "customer service" emails purporting to speed delivery. These asked for feedback on when I was receiving DVDs. After they sent these surveys, they started delaying shipment of DVDs for 3 to 4 days after they received my returned DVDs. I'd advise Netflix customers to not even respond to these questionnaires, as they seem designed to try and determine if using more distant Netflix centers can build in the bigger delays in DVDs reaching customers.

Actually, purposely delaying shipment to maximize profit is SOP for the other 14 US online mail DVD rental outfits. Dvdovernight, Greencine, Filmcaddy, and Quickfliks all also build in inordinate delays in sending new selections. I will soon see if Walmart is also purposely delaying sending DVDs to very active members.

With the new Netflix built in delays, I figured the best plan to get me the most DVDs for the money was the 3 out and I therefore reduced my membership.

I know the UK has an excellent online DVD rental company which also sends DVDs in a plastic protective container. I'd be really interested in the experiences of UK members.