Comment They don't. (Score 1) 490
Specifically: Why do movie studios allow Netflix to send out DVDs to their subscribers by mail, but not to allow the same option in the form of "virtual DVDs" that you could "check out" through their website, and stream them while they're checked out to you?
As far as I know, they don't "allow Netflix to send out DVDs". Content owners have in the past tried to forbid media rentals, but failed. They don't "allow" Netflix to do this -- they simply have no legal standing to prevent it. They likely would if they could.
At least that's my understanding of things.