Over at Read Write Web, Dan Frommer says that Netflix is OK with Hollywood taking actions that hurt Netflix’s DVD rental business–it wants DVD renting to go away, too:
The future of Netflix is 100% based on its ability to grow into the best streaming video entertainment service. Renting discs is very profitable for Netflix, but it’s the past. That’s why it went as far as to try separating its DVD business last year as “Qwikster,” and that’s why it’s letting studios make DVD rentals less attractive with windows and queue restrictions.
With last year’s Qwikster fiasco, we saw that Netflix is so anxious to exit DVD rentals that it hurts its judgment. It’s never healthy for a company to be in a business it dislikes. I wonder if Netflix has considered just ditching rentals–sooner, not later–rather than hoping that consumers are the ones who do the ditching?