(EDIT) Steve, like the overall contents of your post but IMHO this does not belong.
"You have heard the joke about selling something below cost, but making it up in volume."
We do not have another product we want the customer to purchase to make up for loss leaders like in a grocery store. We can not sell below cost indefinately, as in the case of an annual membership, and ever be solvent. I do think AA estimating each dvd has a 50c internal cost might be very high but if they have very many turning dvds around in less than 8-10 days there is no way to make a profit. Now, if we factor in having a $9.99 one out plan like NetFlix has. And consider only turning that one flick around a maximum of 4-5 times, we could make a little or at least offset the accounts we are losing on.
(EDIT)Must get the mailing charges down and must consider having new subscribers give a committment of some sort, like 3 months, afterwhich they can cancel and receive a 50% refund or something along those lines. The limited availablity for free trial period was a good choice. Can keep those limited titles in stock to provide at least one turn around in a 2 week period.
They are working on things but soooooooooo slowly. And failing to put anything out to the public that they are working on. If I were to be negotiating to go into partnership with someone, or merge, or affiliate with that is NEWS. Then NEWS again when the event takes place or even NEWS again if it is not found to be in the best interest of the company. We need NEWS.
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