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I do understand your point but wouldn’t you agree that the money indirectly paid by Netflix is less money than if those customers of Netflix actually purchased said DVDs instead of renting them?

The way I see it ( and again I could be wrong ) Netflix was able to leverage their massive buying power to get the DVDs at less than MSRP. Netflix buys 100,000 dvds of a pupil at title and the MPAA get their cut. Netflix then rents those DVDs 1 million times. Did the MPAA lose out on a cut of those 900,000 would be sales?




Before Netflix people were renting from BlockBuster who also had deals with studios.

Now Netflix is paying the same studios for streaming rights.

Netflix paid Disney $300 million for the streaming rights to Disney IP (https://www.vox.com/2019/4/12/18307539/disney-streaming-laun...) that doesn’t count all of the money it pays NBC/Universal, CBS/Viacom, and Warner.




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