One of the earliest and most successful companies at mail order movie rentals is Netflix. Netflix operates a movie rental service via mail that allows users to rent movies for a monthly fee and keep the movies as long as they pay the recurring charge for the service without late charges.
Thanks to the convenience of the service it has become very popular and enjoys a large user base. Netflix uses a movie queuing service online to allow subscribers to set up a list of films they want to see and have them shipped as previous rentals are returned. Earlier this week the shipping system and Netflix’s streamed movies were unexpectedly out of service.
The service was reportedly down from around 7 a.m. till 6 p.m. on Monday and prevented the shipment of DVDs in customer’s queues and kept online streaming of films from happening. To make up for the outage Netflix is giving customers a 5 percent rebate for the hassle.
The act of giving a rebate is a nice gesture. However, those who subscribe to the $4.99 per month plan you will receive a 25 cent refund. Certainly not enough to make up for having to watch reality TV rather than the flick you were expecting in the mail.
"The key thing here is: This was completely proactive on Netflix's part. There's no requirement for Netflix to do this, no obligation. There was no request for it. We thought it was the right thing to do," Netlfix spokesman Steve Swasey said.
Netflix ships approximately 1.6 million videos each day.