The Netflix business model is probably the one discussed most by European entrepreneurs in 2003. I just learned about (a shame I did not realize this earlier) that Hamburg features another DVD rental service called Amango targeting the German audience. It is run by Andreas Poliza who started GoLive and sold it to Adobe in 1999.

Personally I'm no real believer in the model as it needs very carefully organized logistics in order to run it profitable. Also entry barriers are relatively low and for my taste DSL streaming is already a perfect alternative.

Businessweek has a good recent analysis:

"ELUSIVE PROFITABILITY? The optimism may be well founded. But the Los Gatos (Calif.) concern's results recently jolted investors. On Apr. 15, Netflix reported a first-quarter loss of 11 cents a share, compared to a 5-cent loss in the same period last year, as it spent more on marketing. Increased TV advertising pushed the quarter's average cost of acquiring each new subscriber to $35.12, up from $31.67 a year ago. Netflix says it will continue to spend around $35 to gain each subscriber for the rest of 2004."

"Little wonder the stock fell 21% in the days after the earnings update and has yet to bounce back. Some experts predict a rebound will be hard to come by. While few dispute that Netflix is the leader in the DVD rental biz, competition in this arena is starting to pick up. And as Netflix' costs continue to rise, profitability could remain elusive, some analysts fear."