I think Netflix learned some lessons over the last couple years. A year or two ago they got burned by the big studios who demanded enormous compensation to license their content. Then, the whole "qwikster" debacle infuriated a lot of its customers. Early last year (I think) Starz pulled their lineup from Netflix. So, they mused that if they got into the content business they can cut out the middle men in studios/production companies and not pay more licensing fees. Logically, this is really the only way they can stay in business with ~$10/month subscription fee. They will have to become a content creator in their own right to make it work. I'm not saying this is the best way for this to happen, but I honestly don't see how else Netflix can keep doing what they're doing.