In the article "Netflix: Premium Cable's Worst Nightmare" the question raised is whether Netflix is a competitor of premium movie channels or a complementary service. I have a subscription to Netflix in addition to HBO and Showtime. I use Netflix far more frequently than either of those channels. The only reason to have premium channels is for their shows, not movies.
If Netflix can acquire the rights to stream shows from HBO and Showtime, I believe the premium channel industry will go under. I doubt this will happen- HBO and Showtime execs know that their tv shows are what holds viewers. Netflix is clearly a competitor, even Apple products are programmed to be used with Netflix! Good luck HBO.
I guess, they can go for "Cloud Computing" technologies or more often pay as you use tariff which is used by many music related websites like Pandora/iTunes!
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