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DVDs can rot. But, yes, the problem is likely more scratched/broken/lost.

I assume that the vast bulk of Netflix' DVD rentals are new releases just as they were with Blockbuster. So they're essentially a Redbox competitor.

Netflix simply has no interest is servicing a long tail of DVD rentals. And no one else has figured out how to make that long tail profitable either. You're welcome to give it a shot.



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