As an outside observer, Netflix appears to be in a state of panic over the content providers playing hardball with it. Much like Google, Netflix has such a huge

As an outside observer, Netflix appears to be in a state of panic over the content providers playing hardball with it. Much like Google, Netflix has such a huge lead nobody wants to give it a fair break anymore. In many cases, companies won't even give it an unfair break. Without the support of content providers, Netflix went from disrupting the cable TV industry to playing catch up with HBO. Its only hope now is to produce some killer original content, license what it can, and sell its premium "channel" as a supplement rather than a replacement. All of the upside from its slowing DVD business will have to go into content production, which will eventually put it on even footing with HBO, Showtime, NBC, CBS, Fox, et al. If I had to guess, the original plan was to sell off Qwikster. Get the cash up front for the content push. But now that's not going to work, I guess they're just going to milk it until it's done instead.