When you have to choose between "watch the next episode" or "watch something else", Netflix benefits when the default is "watch the next episode". When you hav

When you have to choose between "watch the next episode" or "watch something else", Netflix benefits when the default is "watch the next episode". When you have to consciously choose to watch the next episode, you can also make the choice to turn off Netflix and do something else. The more you watch Netflix, the more likely you are to keep paying for it. When you actively choose to do something else, the less likely you are to keep paying for Netflix. It's not the perceived value, it's the choice. When you have to make the choice, you could choose to spend more time with something else (like a video game, a Hulu show, etc...). If you choose to do that, you might get sucked into that game or show and decide to not come back to Netflix. Netflix would rather spend the few cents it costs to stream you a new video (which is probably already cached at your ISP) than make your choice to do something else explicit. That said, I think it's a great feature that makes it easy to binge through a series. Its beneficial to both parties in that way -- I get to not move from my couch and they get to send me more entertainment (and keep me paying them). Also -- the more you watch of a series, the more you'll talk about it to your friends. And the more likely they are to watch it. If you get stuck on Episode 2 of 10, you're not as likely to talk about it. But if you keep going to episode 3, 4, 5, then you are more likely to finish the series. And if you finish, you'll probably talk about it, and then the cycle continues...