Comment Because They Don't Have a Choice (Score 1) 490
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?
DVDs are covered by the first sale doctrine (c.f. Bobbs-Merrill Co. v. Straus) and the movie companies have no legal basis to stop Netflix from renting out the DVDs. Digital copies aren't covered by the first sale doctrine and thus require licenses.