Final answer:
Netflix's DVD-by-mail service is not included in the base-price product but is available as a separate subscription, contrary to the false claim. The rise in subscribers for streaming services suggests a preference shift, though physical DVDs remain relevant due to consumer convenience and distinct market demand.
Step-by-step explanation:
The assertion that Netflix includes its DVD-by-mail service in its base-price product is false. While Netflix began as a DVD-by-mail service, it is now primarily known for its digital streaming platform. Nonetheless, it is important to mention that Netflix does still offer a DVD-by-mail service, but it is a separate subscription from the streaming service and not included in the base price. The preference for streaming video among Netflix subscribers has greatly increased over time, suggesting a shift in consumer behavior away from physical DVDs. Despite this, competition from companies like Redbox, which offers physical DVDs, indicates that there is still a market for this format. In 2012, many consumers were reported to prefer a physical DVD disk over streaming video due to the convenience of nearby kiosks and the lack of perfect substitutes for the physical product.