Netflix Splits Off DVD Rentals, Calls It 'Qwikster' > Netflix betting on future Hollywood may not let them have

But will Hollywood let Netflix get to where it says users want to go? Netflix is putting itself at the mercy of the MPAA and so far the MPAA wants to see Netflix die. By betting its future on streaming, Netflix just handed its fate over to the Hollywood studios.

Of course, I still fail to understand why Hollywood wants to cut off a legitimate media distribution outlet for their content. As long as the price of watching content legally continues to climb, the more piracy becomes a viable alternative.

You mean mythical loses like the mythical 60% price hike.

mythical 60% price hike.

I can see Hollywood eventually raising the price of content licensing for Netflix to a point that forces Netflix to essentially price itself out of business.

Further down the road, I wouldn’t be surprised if Qwikster breaks off completely from Netflix, is sold off to another company, or merges with another DVD service, like Redbox.

Why is this happening? Because the future of Netflix is streaming videos. Period. Not mailing them to your house via the U.S. Postal Service, but delivering them to your TV and devices over the Internet.

But to get there, Netflix first has to convince Hollywood to stream its best movies, and it needs to train consumers to stream movies as a default behavior. That means making sure that the streaming business can stand on its own. And that means separating DVDs from the equation, and doing as much as possible to get everyone to stop using them, short of blatant sabotage. (What, you think the bad name, “Qwikster,” is an accident?)

Netflix was paying Starz $30 million but Starz wanted $300 million in a new contract. Hey, Starz, which is better, $30 million or $0 million?