The two sides have clashed over subscriber fees and whether the channel should be part of subscribers' basic or premium packages, among other items.

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As Netflix makes more and more titles available online, the fraction of customers upgrading to premium packages (allowing customers to rent up to 8 DVDs at a time depending on the package) may fall.

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Now, he caters more to doctors, lawyers, and business men that are 30 to 55 years old, many of whom are looking for the more premium arcade packages.

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Mediaset Premium is winning lots of customers with cheaper packages.

ECONOMIST: Pay-television in Italy