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In defence of newspapers and serendipity
Netflix had to make a tough decision just so they can be in the Video space.
Also Starz paid the studios US 1 Billion for the exclusive rights to a unlimited movie service till 2012 .So Netflix and others have to come up with other alternatives when it comes to subscriptions .
http://www.hackingnetflix.com/2007/01/demo_netf...
I think that Movie rental services like CinemaNow and Movielink (both owned by the studios by the way ) have lost rental battle after this salvo from Netflix
The major Studios involvement in the two major download services is just another barrier to sucessfull entry into the online movie market ..
They have to come up with an alternative that can compete with piracy. DRM will always be cracked eventually. Give people something useful and gain enough mindshare are the only ways to compete.