My friend, [Andrei][Andrei], [points out][Andrei link dump] [an article][abovethecrowd article] as possible counter point to my [observation][first article] and [ridicule][second article].
It is [an interesting article][abovethecrowd article] for those not familiar with the legal basis created by the Right of First Sale or the Betamax case (though the application is not **literally** true in the case of Netflix. [Netflix revenue shares][hacking netflix], and has used similar deals [to bargain with in early streaming contracts][netflix warner]).
But, despite those good points, here is why this article is actually pretty terrible…
[hacking netflix]: http://www.hackingnetflix.com/2009/09/netflix-pays-a-revenue-share-on-about-half-of-rentals.html “Netflix Pays a Revenue Share on About Half of Rentals—Hacking Netflix.com”
[netflix warner]: http://articles.latimes.com/2010/jan/07/business/la-fi-ct-netflix7-2010jan07 “Netflix agrees to delay in renting out Warner movies—LA Times”
[abovethecrowd article]: http://abovethecrowd.com/2011/09/18/understanding-why-netflix-changed-pricing/ “Understanding Why Netflix Changed Pricing—AboveTheCrowd”
[Andrei]: http://zmievski.org/
[Andrei link dump]: http://terrychay.com/article/dvds-by-mail.shtml/comment-page-1#comment-682857
[first article]: http://terrychay.com/article/dvds-by-mail.shtml “DVDs By Mail”
[second article]: http://terrychay.com/article/translation-from-asshole-speak-to-english-of-selected-portions-of-netflix-ceo-reed-hastingss-e-mail-to-netflixs-entire-customer-base.shtml “Translation from PR-Speak to English of Selected Portions of Netflix CEO Reed Hastings’s E-Mail to Netflix’s Entire Customer Base”
[second article]: http://terrychay.com/article/translation-from-asshole-speak-to-english-of-selected-portions-of-netflix-ceo-reed-hastingss-e-mail-to-netflixs-entire-customer-base.shtml “Translation from PR-Speak to English of Selected Portions of Netflix CEO Reed Hastings’s E-Mail to Netflix’s Entire Customer Base”
Continue reading about my critique of the defense after the jump