Paradoxically, the unlimited movie buffet might be their undoing. There is a limited number of movies that are truly excellent and worth watching. Once you go through those good ones, you're left with the crap. Having unlimited watching quickly moves you from the good stuff to the crap, and then you cancel your subscription. Neflix faces a scarcity disconnect: its unlimited model says there is no scarcity but out in the real world good movies are still scarce.