Here's how to tell when Netflix is having money trouble.
Measure the scratch density on children's DVDs.
It costs money to replace scratched and old DVDs. Since scratched disks often work this is one of the first things Netflix will scrimp on.
We're seeing a lot of scratches ...
Update 2/24/09: And a lot of broken DVDs too - maybe 1 in 5. I wonder if Blockbuster is any better. It's time to look at alternatives.