>From the article:

"Netflix faces pressure from Hollywood studios and cable programmers to pay
more for streaming content. Negotiations with Liberty Media's Starz were
recently called off because the two sides could not reach an agreement on
pricing terms.

The company also faces competition from Amazon.com, Hulu and others."

And that's the crux...NetFlix had a product, or rather, they owned the
distribution rights to a product, that was thought of as nearly valueless
(streaming content) by the studios. They took those distribution rights and
and just absolutely wrung every nickle they could out of it while creating a
new marketplace, and all the while the studios had to sit idly by watching
another unseen revenue stream make another company a fortune. Now the rights
for the streaming has come due and the studios are going to beat NetFlix
unmercifully. If NetFlix gets to keep even 50% of the streaming rights they
have had in the past i would be shocked. Every studio can set up a site that
allows you to stream their material for say, $1 a piece and that's may be
all she wrote for NetFlix.  Online movie rentals from the studios...they
don't need a middleman like NetFlix or Amazon.

On Mon, Oct 10, 2011 at 8:47 AM, <[email protected]> wrote:

>  Thanks goodness.  I really wish this nonsense would settle down.  I'm not
> bothered by the price increase really.  So I'd rather just pay a little more
> and get things back to normal.
>
> The Irredeemable Shag
> http://firestormfan.com
> http://onceuponageek.com
> http://twitter.com/firestormfan
>
>
>  -------- Original Message --------
> Subject: [The Unique Geek] Netflix backtracks, admits "our bad"
> From: Cary Preston <[email protected]>
> Date: Mon, October 10, 2011 8:44 am
> To: Unique Geek Google Group <[email protected]>
>
>
>
> They are reversing the ridiculous Qwikster decision and re-merging their
> product lines:
>
>
> http://news.yahoo.com/dvds-stay-netflix-website-qwikster-name-dropped-120514851.html
>
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