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After 25 years, Netflix will be shutting down its DVD rental service this September
(dvd.netflix.com)
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I thought of that too and I realized they must already have a channel to get rid of discs since they would need to dwindle down numbers after a new release is no longer in huge demand, it sounds like they also cull some old releases entirely based on the comments here.
I know GameFly sells their used games directly to consumers, but Netflix must be selling them in bulk to someone since they never do that. Unless they are getting like for rental only discs and have some sort of deal with studios where they have to return/discard them or something.