From July 2009 until December 2010, a Minneapolis-based company called Streaming Flix allegedly hit on a hugely profitable business model—slapping steep monthly fees for its online movie service on the phone bills of 253,269 customers. In total, $9.7 million was billed in that year and a half. How many movies did Americans watch after spending all that cash? 23.
That’s no typo—and it means an average of $422,000 was spent each time someone streamed a film. It also suggests that 99.99 percent of the people paying monthly fees for the service weren’t using it.
Perhaps that’s why the very first Google hit for “Streaming Flix” points to a question from one Barbara G. She wants to know what the company is and why “I am being billed for it with my AT&T bill but did not sign up for it?” The situation grew so bad that the FBI opened a probe of Streaming Flix and its related companies. In December 2010, the Bureau asked the public to send in complaints about the company.
from Ars Technica