[Sniper]

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There's no loyalty when it comes to renting videos; to use a poker analogy, if you see a better rakeback plan at a different skin, you're just going to take that better %, meaning the affiliate makes less and less money until they make virtually nothing.

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The majority of poker players have no idea what rakeback is. In fact, one of the reasons why Party is so negative on rakeback, is because of the power of their non-rakeback affiliates.

Additionally, there are differentiating factors between rakeback affiliates other than rakeback %. Chasing the best % deal is ultimately a losing proposition.

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Assuming you're talking about Netflix, isn't the competition going to just eat away their profit margins? I'm no MBA, but the rental business looks like something that's going to get commoditized to the point where one can only make the slimmest of margins, which isn't that great for the growth prospects of the company.

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Netflix is in a much better position to hold its own against Blockbuster in the mail order rental market, because it doesn't have all the overhead required to keep Blockbusters B&M business going.