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> In the longer term, however, I fail to see how Netflix can avoid having its product turn into a commodity.

One way is by targeting as many delivery platforms as possible and just being there first. My TV for example has a Netflix "app" so I would likely pick Netflix. Many BlueRay players have built-in access to Netflix. Maybe built native apps for all the major mobile devices.

> what's stopping Dreamworks from simply charging and delivering the movie to consumers directly?

Becaus then users would end up having a bunch of hardware/software specific to each studio. Not common way to organize & sort your media queue.

Yes, Netflix already fucked it up by splitting off Qwickster but imagine having a different service for each studio.




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