The thing with Netflix is that it can disappear as quickly as it arrived. Given their lack of a large catalogue of movies, the only thing keeping subscribers is a stream of new interesting shows. I don’t think people will keep a subscription just to watch old House of Cards episodes. There is zero lockin. So if they indeed start deteriorating the user experience, they should see the p&l impact immediately.
I wonder, why Netflix doesn't buy some legacy entertainment companies to build up more of a back-catalog? If they've got so much cash to spend on new content, why not spend some of it to own old content too? Part of the strength of the existing media conglomerates is their rights to the accumulation of decades of output. Not everyone is so interested in new stuff (myself, on average I'd rather watch 80s films than new ones).
>why Netflix doesn't buy some legacy entertainment companies
Now that you say that I wish they would have grabbed FOX away from Disney. That would have given them something better to compete with and not allowed Disney to be even larger than it already is.
