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While high-speed isn't available everywhere (I know, because it isn't on every street where I live) it does cover a majority of Americans. Netflix already makes plenty of money and doesn't seem to be suffering from not being available to all Americans.

It doesn't matter how dense the media is as you still need to get the content onto it. This will be done by downloading or purchasing it at a store on some other media to transfer to it.

Thing is, I would rather pay $8/mo to stream older movies I will only ever watch once rather than buy them on DVD for $5/ea in the bargain bin. Even if I decide to watch it a few times, my price for it is still much lower.

You also call the media cheap, which it is and will be, but you forget the costs of licensing. I am sure it doesn't cost $25 to make a blu-ray. Streaming services allow a type of collective bargaining for it's users and gives a lower price overall.




Ever been here to Canal Street?

http://en.wikipedia.org/wiki/Canal_Street_%28Manhattan%29 ' Many vendors there are not bothered by licensing costs.




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