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Streaming is a huge pain compared to playing files on disk. Pick a service, navigate its messy UI, hope it has what you want, use the poor in-browser video player (or terrible, slow, buggy app)... Or search through a folder, double-click, done.

Also streaming requires reliable high-speed internet. This is easy to take for granted when you live in a major metro area, but for more rural users, high speed internet may not be available at all.

Also, while this may not be usually a problem with Netflix, in general streaming also requires enough servers on the other end, and uncongested pipe between them and you. I think most of us experienced the cases where, despite being on a reliable high-speed Internet connection, the movie still keeps pausing every minute or three, because it's not streaming fast enough to keep up with wall clock.

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