Doug Mataconis makes the case that the Netflix/Qwikster split was caused by our outdated copyright system:
This is the point where Netflix tried to argue that you should
only count users that actually connect digitally and actually
watch a film. While they originally offered digital streaming
bundled with DVD rental, many of the rural customers likely never
actually “connect” to the digital product. This argument may
have worked for a while, but eventually Hollywood said, “No way.
Here is how it is going to work. You will pay us a $/user/month
for anyone that has the ‘right’ to connect to our content —
regardless of whether they view it or not.” This was the term
that changed Netflix pricing.
With the discs-by-mail business, they never needed permission from the movie studios. With streaming, they do.
★ Monday, 26 September 2011