I don't think I would pay $30 a month for Netflix. From my perspective the demand for their services is fairly elastic, especially considering the substitutes.

I don't think I would pay $30 a month for Netflix. From my perspective the demand for their services is fairly elastic, especially considering the substitutes. However, I do expect that prices will be recalibrated once video streaming makes up more substantial portion of their business. I'd imagine the economics of streaming vs. sending a DVD are quite different.