Films offered on Netflix lose value rapidly. Some cable and broadcasters won’t go near title once Netflix begins streaming it. Netflix takes the scarcity out of the equation, one film industry insider said. People can watch any of the service’s commercial-free films and shows anytime they want.

The prevailing feeling among the studio managers I spoke with is that Netflix’s streaming service will be a good outlet for the least-valuable material. If they have their way, Netflix will be the Internet equivalent of a swap meet, where only the most dated and least popular titles are available. The studios are betting that eventually people will get bored with the service.