Final answer:
The Netflix DVD-by-mail business model is based on flat rate DVD rentals through the mail. Customers can keep DVDs as long as they want and return them in pre-paid envelopes. With the rise of streaming services, this model has become less popular.
Step-by-step explanation:
The Netflix DVD-by-mail business model is based on providing customers with flat rate DVD rentals through the mail. Customers can sign up for a subscription plan and choose DVDs from an online catalog. Netflix then mails the DVDs to the customers, who can keep them as long as they want and return them in pre-paid envelopes. Once a DVD is returned, Netflix sends out the next DVD in the customer's queue.
This model became popular because it allowed customers to have access to a wide selection of movies and TV shows without having to go to a physical store. It also provided convenience, as customers could keep a DVD for as long as they wanted without incurring late fees. However, with the rise of streaming services and online rental options, the DVD-by-mail business model has become less popular.