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Looking at Netflix's depreciation shows that it depreciates all its long term assets within one year time! This is considered good. Moderate companies will depreciate all their long term assets within three to four years while the most aggressive ones will depreciate it fully within ten years. Therefore, there is a lot of potential in Netflix should they invest in a longer term assets or if they decide to lax their accounting standard a little bit. My estimate is that it will bring an additional $ 40 Million pre tax profit, or $ 0.60 per share.
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Netflix threw in some more innovations: like rental queues, no late penalties, distribution centers placed strategically, and
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