Remember that Netflix just lost access to a big library of content from Starz (sp?).
By splitting the 2, it allows Netflix to wage a war on one side to get rights without affecting the other side's access to content.
My new sony vcr allows me to rent sony pictures at $5.99 a shot. Great integration with internet connected vcrs (ok, it is a blue ray player bit I still call it a vcr
But Sony would rather I do business with them directly at a higher price than do business with Netflix.
Netflix did manage to build its brand before hollywood woke up and saw it as a threath. Same with YouTube. I am betting they are planning to survive long enough until Hollywood begins to accept and support this.
What is likely to happen though is that while Hollywood will reluctantly agree to a reduction of their profit margins, they will probably force Netflix to raise prices.
Hollywood doesn't want to kill off DVD/BD sales even though they will go the way of teh CD. People will only buy blue rays for movies that are worth keeping (big stuff like star wars, avatar etc).