First let's look at the difference in cost and what you get, then discuss other ways that using Netflix, or similar services, saves you money.

Netflix is a service where you sign up and pay a monthly flat fee for movie rentals. Then, you go online and you make a list of the movies you want to watch. Netflix mails them out to you in order. So, you get the movie in the mail, then when you are done watching it you mail it back to them, and they send you the next movie on your list. To get the most out of a program like Netflix, it is wise to sign up for multiple movies at a time, that way you always have one, and always have one coming to you. They have various prices, offer a free trial, you can get one movie for about $10 a month, for two movies at a time the cost is about $14, and for three movies at a time the cost is $17, and for four movies the cost is $24. This also includes unlimited downloads of movies to your computer for instant watching. A great perk!

Okay, so now, let's look at the price to rent a movie from Blockbuster. For a New Release the cost is about $4.25. In addition to that, if you turn your movie in late, you have to pay an additional $4.25. So, if you rent five or six movies in a month, you are going to spend over $20. That means you could, for the same price get a three movies at a time Netflix rental, and just be sure to go through it two times that month. Basically, the per movie cost goes way up.

So, if you get just two movies a month from Netflix, you are equalling what you would have spent at Blockbuster. However, if you watch the movie and send it back right away, you have the potential to get far more movies each month, thus making the cost well worth it.

Other ways it helps you save is it means you have an expected expense, and you will automatically try to get your money's worth, that is just human nature. In addition, if you get a movie in the mail, you may choose to stay at home and watch that movie rather than go out that evening, which can save you untold amounts.

Also, because it is convenient, and you really do not have to leave your house to get the movies, there is no temptation to stop and pick up food, buy a soda at the checkout line, or impulse shop in other ways. This can mean even greater savings.