Netflix has shelled out $4 billion in contractual payments to continue to secure the rights to rent and stream hit movies. The pressure on the company is severe, as the upfront costs of these licenses will result in a loss for Netflix this year. The act of streaming a movie or renting a DVD may seem benign to consumers, but it's actually the end result of highly complex and somewhat intrusive marketing methods Netflix uses to try to stay out in front of its rivals such as Amazon and Wal-Mart. The company depends heavily on learning viewer's movie preferences so it can recommend other rentals or downloads. This is the backbone of Netflix' business plan. However, DVD rentals require customers to fill out a rating evaluation in order to learn about their viewing habits. Not so with downloads- a computer tells Netflix what you are watching and when. (Many people rent DVDs and return them without getting around to watching them.) The company views downloads as the wave of the future and sees the time when the bulky, labor-intense method of mailing DVDs becomes a thing of the past. Click here for more