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Movie Studio Angst Over Content Delivery

The story goes: movie studios have seen their revenue from home entertainment media sales fall off a cliff; during the same time, Netflix nurtured a successful subscription service through streaming content and DVD mailings; movie studios realize their best interests lie in digital content delivery and have sought to re-price their licensing agreements with online providers; Netflix, in turn, having no choice, enter into these contracts and pass the costs to its customers; these very customers react negatively to the price increases and leave en masse; in order to clarify their long-term strategy Netflix announces it will divide its streaming service (Netflix) from its DVD mail service (Quickster), further angering its customers.

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