Special Report: Flix tricks

They're in your mailbox. Ready to watch.

At first Netflix seemed like the perfect service for jim - a movie junkie.

Jim Maguire, Netflix subscriber
"Being able to enjoy movies, as many as I'd like."

But after a few months, Jim says he noticed a change in service. The more DVD's he rented, the longer it took to get them.

"They're here."

Jim Maguire, Netflix subscriber
"It would take 3-4 days for things to be received by them. And then there would be another 3-4 days before I would see other new films."

Critics say frequent renters are penalized with slower service and fewer new releases.

Manuel Villanueva, Netflix critic
"The more you rent the slower they'll send your rentals to you."

Manuel Villanueva started tracking his DVD delivery and posting it on his website. He says he went from receiving more than twenty DVD's a month to about 13 once he was identified as a heavy renter.

"Houston we have a problem."

Manuel Villanueva, Netflix critic
"If you rent too many rentals from them it costs them money in postage."

Last year a California customer filed a class action lawsuit against the company, saying they failed to provide the "unlimited DVD rentals" and "one day service" they promised on their website

Netflix settled and now you can benefit.. If you were a Netflix member between January and October of last year, you'll be eligible for a free month's upgrade, or a free month's subscription.

"Show me the money!"

The company has now revised its terms of service to say: "We give priority to those members who receive the fewest DVD's."

And they told 7News that it's simply a case of supply and demand...and that "the vast number of subscribers are highly satisfied with our service."

But even with the delivery delays... Jim says the credits haven't rolled on his Netflix experience.

Jim Maguire, Netflix subscriber
"I do love my movies."

(Copyright (c) 2006 Sunbeam Television Corp. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)