Their main competitive advantage was their physical delivery infrastructure, which is very hard to replicate. If the DVD business dies slowly (as Hastings said

Their main competitive advantage was their physical delivery infrastructure, which is very hard to replicate. If the DVD business dies slowly (as Hastings said it will) and is replaced by streaming, they are left with no competitive advantage. There is a good many companies that have the infrastructure to stream a large amount of video content (Amazon, Google, Akamai, etc). All of these companies will lack any competitive advantage , and will be squeezed to the last cent by the content providers, leaving them with just enough cash to run their infrastructure. This doesn't sound like a great business model.