Netflix competitor Peerflix to cease operations

Peerflix offered a service similar to Netflix, except that it was geared toward members trading their own discs rather than renting them. According to its Web site, its demise is attributable to escalating operational costs.

Last night, an e-mail was sent to Peerflix users announcing the service's ultimate departure from the DVD marketplace, and into what is regarded as the current "bubble" in internet commerce: advertising.

Charging 99 cents per transaction, Peerflix allowed users to post two DVD lists, listing those they wanted and those they were selling. Each film was assigned a trade value by Peerflix, and when a user received a film on their want list, they paid the sender. Peerflix compared it to stock trading, and users engaged in heavy trading would ideally earn profits. And, naturally, cashing out the account cost $10.

Problems with the service's trading model were spotted early in its lifespan. In December 2006, Techcrunch's Michael Arrington saw the service's faults as being irreconcilable, predicting it would "slide into obscurity."

Obscurity, thy name is advertising. Peerflix Media Network focuses on the same audience as the Peerflix site: suburban males between the ages of 25-54 with "high disposable income." Their target demographic could safely be called "fanboys" of various stripes. Partner sites include Earth's Mightiest.com ("a fansite for geeks who love Comic Books, Movies, Video Games...") and badmovies.org ("a website to the detriment of good film.")