Netflix also started out as a post service. Did you know that HBO has a significant interest in QFX?
I think QFX's business model is currently fairly simple - to seek to service the increasing demand for movies on-demand and become a profitable download/streaming service.
"that Quickflix is a download service of pretty crappy movies (like iTunes movies) and also still posts DVDs in the mail?"
I would challenge the notion that the movies are crappy..there is some lag in providing new releases but the movies are hardly crappy. You probably enjoy some of them in the past and some of them may even be your all-time favorites that others may not have had the opportunity to watch yet..
P.S. Netfix still sends DVDs to some 7 million customers in the mail also..
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