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The Secret Inner Workings of Netflix

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The economy is stagnant and many businesses are struggling to stay afloat, yet Netflix consistently shows a profit. Well, what better way to temporarily take your mind off of job hunting and bill paying than to watch a movie? And if that movie is delivered right to your mailbox so that you don't even have to get dressed to retrieve it, that's just icing on the cake. But where exactly do those Netflix DVDs come from? How do they get to your home so quickly? These questions and more are answered below, but keep it quiet, please; the Netflix folks are very big on secrecy.

Netflix has 58 warehouses nationwide, and each one is non-descript and unremarkable. There is no outside signage or even a corporate color scheme to give the slightest hint to the rest of the industrial park what lurks inside those concrete walls.

The company has good reason to keep its presence on the down low: each warehouse contains not only millions of DVDs, but also some very sophisticated and expensive sorting and processing equipment. Aside for the theft potential, Netflix is also trying to avoid having customers showing up on their doorstep trying to return or rent discs.

netfUnmarked Netflix trucks are dispatched to the local main post office at 3:00AM six days per week to pick up cartons of returned DVDs. (Thus, getting your disc in the post early in the day doesn't mean you'll get your next movie any faster; there is only one pick-up per day.) The incoming cartons are handed off to employees who open each box and then spend their entire eight-hour shift taking a disc out of the box, removing it from the envelope, making sure that the title matches the sleeve, wiping it down in one motion and inspecting it for scratches or cracks, and then placing it in one of two bins (one for good discs, one for rejects). Seasoned employees perform this sequence about 650 times per hour, which makes them susceptible to repetitive stress injuries. As a precaution, there is a mandatory stretching/callisthenics break every 65 minutes. [Photo credit: Matthew J. Lee]

Discs that pass inspection are loaded into a machine that scans them (at the rate of 30,000 bar codes per hour) and generates an email confirmation to the sender that the disc has been received. The discs are then scanned a second time, during which process the system checks to see if the DVD has been requested and, if it has, it is automatically sorted by ZIP code. A separate machine inserts and seals the discs into envelopes and a laser printer zaps the address onto the front of the mailer. The machine stuffs and seals about 3,200 envelopes each hour, which are then packed into cartons. Come 5:00PM, the cartons are loaded into trucks and hauled back to the post office, completing that final curve in the Netflix circle.

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The Secret to the World's Most Comfortable Bed Might Be Yak Hair
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Tengi

Savoir Beds laughs at your unspooling mail-order mattresses and their promises of ultimate comfort. The UK-based company has teamed with London's Savoy Hotel to offer what they’ve declared is one of the most luxurious nights of sleep you’ll ever experience. 

What do they have that everyone else lacks? About eight pounds of Mongolian yak hair.

The elegantly-named Savoir No. 1 Khangai Limited Edition is part of the hotel’s elite Royal Suite accommodations. For $1845 a night, guests can sink into the mattress with a topper stuffed full of yak hair from Khangai, Mongolia. Hand-combed and with heat-dispensing properties, it takes 40 yaks to make one topper. In a press release, collaborator and yarn specialist Tengri claims it “transcends all levels of comfort currently available.”

Visitors opting for such deluxe amenities also have access to a hair stylist, butler, chef, and a Rolls-Royce with a driver.

Savoir Beds has entered into a fair-share partnership with the farmers, who receive an equitable wage in exchange for the fibers, which are said to be softer than cashmere. If you’d prefer to luxuriate like that every night, the purchase price for the bed is $93,000. Purchased separately, the topper is $17,400. Act soon, as only 50 of the beds will be made available each year. 

[h/t Travel + Leisure]

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Mike Mozart, Flickr // CC BY 2.0
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Fart Gallery: A Novel History of Spencer Gifts
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Mike Mozart, Flickr // CC BY 2.0

When U.S. Army Corps bombardier Max Spencer Adler was shot down over Europe and imprisoned by the Nazis during World War II, it’s not likely he dreamed of one day becoming the czar of penis-shaped lollipops and lava lamps. But when Adler became a free man, he decided to capitalize on a booming post-war economy by doing exactly that—pursuing a career as the head of a gag gift mail-order empire that would eventually stretch across 600 retail locations and become a rite of passage for mall-trekking teens in the 1980s and 1990s.

To sneak into a Spencer Gifts store against your parents' wishes and revel in its array of tacky novelties and adult toys felt a little like getting away with something. Glowing with lasers and stuffed with Halloween masks, the layout always had something interesting within arm’s reach. But stocking the stores with such provocations sometimes carried consequences.

A row of lava lamps on display at Spencer Gifts
Dean Hochman, Flickr // CC BY 2.0

Returning from the war, Adler sensed a wave of relief running through the general population. Goods no longer had to be rationed, and toy factories could return to making nonessential items. The guilt of spending time or money on frivolous items was disappearing.

With his brother Harry, Adler started Spencer Gifts as a mail-order business in 1947. Their catalog, which became an immediate success, was populated with items like do-it-yourself backyard skating rinks and cotton candy makers [PDF]—items no one really needed but were inexpensive enough to indulge in. In some ways, the Spencer catalogs resembled the mail-order comic ads promising X-ray glasses and undersea fish kingdoms. Instead of kids, Adler was targeting the deeper pockets of adults.

Bolstered by that early success, Adler moved into a curious category: live animals. He had small donkeys transported from Mexico and marketed them as the new trend in domestic pets. LIFE magazine took note of the fad in 1954, observing the $85 burros, being sold at a clip of 40 a day, “except for stubbornness, are very placid.”

Burro fever foreshadowed the direction of Spencer’s in the years to come. The Adlers opened their first physical location—minus livestock—in Cherry Hill, New Jersey in 1963, expanding on their notion to peddle unique gift items like the Reduce-Eze girdle, which promised to shave inches off the wearer’s stomach. That claim caught the attention of the Federal Trade Commission, which chastised the company for advertising the device could reduce body weight without exercise [PDF]. The FTC also took them to task for implying their jewelry contained precious metals [PDF] when the items did not.

Offending the FTC aside, Spencer’s did a brisk enough business to garner the attention of California-based entertainment company Music Corporation of America, Inc. (MCA), which purchased the brand and proceeded to expand it in the rapidly growing number of malls across the country in the 1970s and 1980s. (The mail order business closed in 1990.)

Brick and mortar retail was ideal for their inventory, which encouraged perusal, store demonstrations, and roving bands of giggling teenagers. The company wanted its stores to capture foot traffic by stuffing its aisles with items that had a look-at-this factor—a novelty that invited someone to pick it up and show it to a friend. When executives saw specific categories taking off, they “Spencerized,” or amalgamated them. When there was a resurgence of interest in Rubik’s Cubes and merchandise from the 1983 Al Pacino film Scarface, visitors were soon greeted in stores by stacks of Scarface-themed Rubik’s Cubes.

Mike Mozart via Flickr

Apart from its busy aesthetic—“like the stage from an old Poison video,” as one journalist put it—Spencer's was also known for its inventory of risqué adult novelty items. Pole-dancing kits and sex-themed card games occupied a portion of the store’s layout. The toys captured a demographic that might have been too embarrassed to visit a dedicated adult store but felt that browsing in a mall was harmless.

Sometimes, the store’s blasé attitude toward stocking such items drew critical attention. In 2010, police in Rapid City, South Dakota seized hundreds of items because Spencer's had failed to register as an “adult-oriented business,” something the city ordinance required. As far back as the 1980s, parents in various locales had complained that suggestive material was viewable by minors. In 2008, ABC news affiliate WTVD in Durham, North Carolina dispatched two teenage girls with hidden cameras to see what they would be allowed to buy. While they were shooed away from a back-of-store display, they were able to purchase “two toy rabbits that vibrate, moan, and simulate sex” as well as a penis-shaped necklace.

As a possible consequence of the internet, there are fewer incidences of parental outrage directed at Spencer’s these days. And despite the general downturn of both malls and retail shopping, the company bolsters its bottom line with the seasonal arrival of Spirit Halloween, a pop-up store specializing in costumes. Despite only being open two months out of the year, their Spirit locations contribute to roughly half of Spencer's $250 million in annual revenue.

Today, the chain’s 650 stores remain a source for impulse shopping. They still occasionally court controversy over items that appear to stereotype the Irish as drunken oafs or other inflammatory merchandise. With traditional mall locations expected to shrink by as much as 25 percent over the next five years, it’s not quite clear whether their assortment of novelties will continue to have a large retail footprint. But so long as demand exists for fake poop, fart sprays, and penis ring toss kits, Spencer’s will probably have a home.

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