Whom do you consider to be Netflix’s competition?
Streaming is the future. There are enormous costs involved in handling physical discs.
Just like DVD-by-mail killed the video store, streaming will kill the DVD. Why buy a copy of a movie if I can watch it whenever I want, at home or on my portable device?
Recently, Amazon prime has become a real competitor. If you look at all the other “channels” available for a Roku, you’ll see that competition is coming from all directions.
I agree that on-demand streaming is the future and that DVDs will some day be obsolete. However, one of Netflix’s prime competitive advantages has been its DVD distribution network. If the network is no longer needed to compete with Netflix, it will be much easier for competitors because it’s much easier to compete if all you need is a video streaming system and access to content.
I’m sure the content providers will have open arms for alternatives to Netflix.
Because currently the stream isn’t guaranteed to always be there. Recently netflix was arguing with Sony so all the Sony stuff left the stream, meanwhile the Sony movies I own are always available. If the streaming situation gets to the point where the movies really are always there whenever you want without having to be signed up to 4 or 5 different services then it will become a legitimate replacement. But it’s not there yet.