The biggest problem I see is this:
I agree that it looks like they are trying to go ‘streaming-only,’ and in the near future will sell off the Qwikster brand and all the associated gobbledygook (distribution centers, etc…), but as others have said, the streaming options aren’t great (I’m satisfied with it, but mostly because I use it for TV shows, not movies. I was able to get into New Who because of it, got all caught up on the first five seasons, not bad.) I predict that with a bigger emphasis on streaming, there will be an upsurge in the content…but it won’t last.
More and more studios are going to want a bigger piece of the streaming pie, and will charge Netflix more. If Netflix doesn’t pay up (I’m guessing initially they will, but then won’t after the studios inevitably raise prices again) ,they cut ties and take back their content, and then simply offer it up to stream on their own service.
This will be a bad deal for everyone involved, because no consumer is going to want to have separate accounts for Sony’s, Warner Brother’s, CBS’s, etc… streaming services, and sure as Hell won’t pay for multiple accounts. But it’s clear that studio execs are all idiots when it comes to thinking they know what the consumer wants, as they do shit like this all the time. They’ll go on thinking that their service is best, because since we’re buying directly from them, we eliminate the middle-man (Netflix,) and get it for cheaper!
Well, sure, Sony’s service might be cheaper on it’s own, but obviously if you pieced back together what you would have had form Netflix, it’d probably be ten times as much.
So Netflix streaming will be even worse than it is now, more people will cancel, and Netflix goes belly-up. Meanwhile, the studios get more pissed that they are making less money now, because as said, who is going to use their streaming services? And with Netflix gone, they lost the chance to go back to them. More people pirate movies/TV shows again, so the studios do even more annoying copyright shit to combat it, which does nothing more than piss off legitimate consumers, and entices them to pirate themselves.
All told, it will end up worse for everyone…consumers, content providers, and content creators.