[dkfmn]

Yes. Netflix is causing a similar shrinking to the RENTAL market that Craigslist did to classifieds, albeit less severe. However, the SALES of Physical Media (DVDs/Blu-Rays) are down huge over the last ten years and there hasn't been anything to replace that revenue. Essentially selling 30 DVDs to you and all your friends was replaced by selling 1 DVD to Netflix.

One more piece of history that you may already know: in the prime days of the rental market companies like Blockbuster paid ~$100 per movie and had access to the titles before a consumer could purchase them. Netflix didn't play ball, rather than pay those prices they'd wait until the DVDs were generally available and buy at consumer/bulk prices.

I wouldn't shed any tears for the industry though, they'll survive. Besides, just to be clear, I love Netflix, they're great.

More info: http://press.ihs.com/press-release/technology/spending-movie...