The basic idea is that DVDs that were just released were the most expensive and they were in high demand by customers. Older titles, which many refer to as longtail titles, are substantially cheaper. We developed a simple model for cost estimates. If a title was less than 3 months old (a new release) it had a rough cost of 3 dollars to ship back and forth to customers (2 dollars for cost/licensing, one dollar for shipping and handling). If 3 to 12 months old, it was 2 dollars (one in dvd/licensing cost and one dollar for shipping and handling.) Titles older than one year were just 1 dollar total cost.-- the shipping and handling as we essentially already owned it (amortized the costs). We called it the 3-2-1 model.