'Throttling' Angers Netflix Heavy Renters - Yahoo! News

I hope my porn-by-mail company doesn't follow the same policy.

'Throttling' Angers Netflix Heavy Renters - Yahoo! News: "Throttling' Angers Netflix Heavy Renters

By MICHAEL LIEDTKE, AP Business Writer Fri Feb 10, 2:24 PM ET

SAN FRANCISCO - Manuel Villanueva realizes he has been getting a pretty good deal since he signed up for Netflix Inc.'s online DVD rental service 2 1/2 years ago, but he still feels shortchanged. That's because the $17.99 monthly fee that he pays to rent up to three DVDs at a time would amount to an even bigger bargain if the company didn't penalize him for returning his movies so quickly.
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Netflix typically sends about 13 movies per month to Villanueva's home in Warren, Mich. — down from the 18 to 22 DVDs he once received before the company's automated system identified him as a heavy renter and began delaying his shipments to protect its profits.

The same Netflix formula also shoves Villanueva to the back of the line for the most-wanted DVDs, so the service can send those popular flicks to new subscribers and infrequent renters.

The little-known practice, called 'throttling' by critics, means Netflix customers who pay the same price for the same service are often treated differently, depending on their rental patterns"