DVD-by-mail

Redbox allows a user to reserve DVDs or Blu-ray discs online to retrieve and return the DVD at interactive kiosks located in various retail establishments.

Given sufficiently fast mail delivery, customers on "unlimited" plans who return their discs quickly enough can receive enough shipments in a month that the company's cost of delivery exceeds the fixed monthly subscription fee, making this type of customer unprofitable.

One is the so-called "throttling" approach, which received significant publicity with regard to Netflix (which refers to the practice as a "fairness algorithm").

Similar "fair use" caveats can be found in the terms and conditions of leading UK companies such as LOVEFiLM.

[citation needed] LOVEFiLM came under scrutiny from users over its claim to offer "unlimited" movie rentals.

Some users reportedly found the company used long delays at the shipping stage to reduce the number of films a month a customer can rent.

However, the terms and conditions each customer has to agree to in order to subscribe to the service states, "Blockbuster Online reserves the right to determine product allocation among members in its sole discretion.

[7] Netflix announced on April 18, 2023, that their DVD subscription services would be closed and the last DVDs sent via mail was on September 29, 2023.

[11] There are a number of smaller companies, some of which target specific niches: eHit,[12] the first such niche company, came online in 2000 targeting fans of Asian films; specifically Japan, China, and Korea, expanding to include other countries' films over time.

Blockbuster Online started DVD rentals in Mexico during 2007, after the chain acquired a local startup called MovieNet.

[citation needed] Blockbuster Online started DVD rentals in Brazil during 2006 and now offers Blu-ray plans as well.

[13] Given the relatively small geographical area and high population density of the UK, online DVD rentals have some differences from the US, as a single shipping facility can serve the entire country.

In-Movies.com launched the UK's first subscription service in May 2000 at £14.99 per month for a 3 disc plan and merged with Screen Select in December 2003.