… streaming video comes with a much lower delivery cost than shipping discs. According to Netflix CEO Reed Hastings at NewTeeVee Live, the company spends about $600 million a year on postage for its mail-order business, but the cost of streaming a video title is much cheaper than delivering a DVD by mail — about 5 cents a gig for bandwidth — or about a nickel per movie.
via Forget TV Everywhere, How About Netflix Everywhere?.
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