Those services have a smaller selection of older free movies, with their own share of clunkers in the inventory, and charge more overall for newer films.
If lots of people want to buy apples on a given day and there is only one market stall that sells them, the vendor can charge high prices and still sell the entire inventory.
They rely on recruiting new representatives to profit (not product sales), charge reps large upfront fees and convince them to buy large amounts of inventory that is not returnable.
The private-equity firm is leading the charge behind a three-year restructuring plan begun last July to help the firm reduce its inventory as well as introduce new products more quickly.