Online DVD rentals have caught on by word of mouth. People like me who use them tell others its the way of the future and its so convenient and shame them if they don’t have it. This is the best form of advertising in the world. Netflix is starting to get the kind you don’t want. According to some recent articles Netflix has been “throttling” some customers who return their movies too fast to save money. Throttling is delaying shipments to make sure the customer only gets so many movies per month. This is dead wrong and is causing problems for the PR department. The keep promoting this one day thing and there is already a class action suit against the company. Netflix even changed is terms of use to admit they treat frequent users different. Here’s why. Every DVD costs $.78 in postage to send out. The 3 CD package cost $17.99 a month, so you do the math. Users that get into the 15 DVD range or more are not profitable customers. Are the going to have to put a cap on useage? Their customer service is top of the line no doubt but nobody wants to feel like they’ve been capped. Part of the illusion of being in the service is you rents tons of DVD’s and can’t possibly see how they make money. But in reality most of us only rent 4 or 5 a month. If anything these new articles are making many people think how many DVDs they really do rent. If they just rent 4 or 5 maybe they would be better off just renting at the video store. Either way I see a new publicity campaign coming out for Blockbuster (who may do the same thing) “Don’t Get Throttled” . More on the story here.