Temis the Bleeding Aorta wrote:
I don't see why Vdio would be able to avoid Netflix's dilemma: that the content producers realize that cheap streaming undermines their business model, and that they are facing the same apocalypse that has already hit the music business - that the value of content inexorably sinks towards zero when it becomes digital - and will fight like holy hell to stave off the inevitable.
It could be something similar to Amazon's MP3 store being given a sweetheart deal by the music companies (lower prices, no DRM) to help break Apple's popularity with the iTunes Music Store and reduce their negotiating power. Netflix doesn't have quite as solid a bargaining position as Apple did, but it's still the king of movie rentals, and the way things are (well, were) going, its popularity with customers and, thus, influence over the studios can only go up.
(On the other hand, that apparently wasn't very effective against Apple. While they did ultimately cave on variable pricing, they got universal DRM-free tracks for their trouble).