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Focusing on Streaming while slamming the door on DVD is a HUGE mistake that I can only assume will one day lead to this company's demise. I've been a subscriber for years, and I hope I'm wrong, but streaming just isn't feasible at this point in time. Why? Because Netflix doesn't OWN anything. With DVD's, they could own, or engage in a revenue sharing model. For the most part once they had a DVD, they had it, and could rent it out as many times as they wanted to, especially back catalog titles. With streaming, these deals are different. They expire, and need to be renegotiated. Now, they are paying for the same content over and over and over. And when the cost for the content gets too high, Netflix walks away. Yes, for the consumer streaming is much more convenient. I love it, personally. But anytime you "lease" content, costs go up. As costs go up, so do membership fees. This has been proven now that the businesses are split apart. The DVD business is profitable, and the instant arm isn't.
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Apr 25, 2012