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  • Peerflix is a DVD trading service based in Palo Alto, California, launched quietly in 2004 by founders Danny Robinson and Billy McNair. The concept behind the service is similar to that of file trading that is done through peer to peer software such as Kazaa, except physical DVDs are exchanged instead of files. Users pay 99 cents per trade (as of 2006) for Peerflix to facilitate the trading through their website. Since physical DVDs are exchanged with no copies made, the service is completely legal. The service works similarly to that of Netflix, but Peerflix does not have or need distribution centers. In fact, as of 2005, the company has just 16 employees in Palo Alto. All of the trading is done between users of each network (cross-border trading is not yet available). Members mail DVDs to each other using the patent-pending PeerMailer, which is printed directly from a member's printer and is comprised of two standard sheets of copy paper.

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