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About $40 in late fees later, he was mulling plans to turn the traditional rental model--pay per title, for a set time, with late fees--into a system in which customers pay a flat fee to use the service as much as they want each month. DVD made the idea a reality, because the weight and durability of discs made it feasible to send titles via the mail.
After its 1998 founding and launching its subscription service in 1999, Netflix now boasts more than 1.05 million subscribers. Those customers pay $19.95 monthly for unlimited DVD rentals from more than 14,500 titles, up to three at a time with no late fees, sent via one- to three-day mail delivery...
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