[r00fus]

Netflix's problem is that they can't prevent #3 - case in point, my daughter discovered Ponyo on Netflix which was possible through NF's agreement with Starz. At some point Starz refused to give Netflix a license to their licensable content (i.e., to many Disney titles in this case) at any cost.

Of course, we now own the video as it's highly rewatchable for the kiddo, but I wouldn't doubt that Neflix would have happily paid ever increasing content costs to a point but their supplier cut them off because they felt Netflix was competing with them.

[Drizzle_Returns]

Well Stars would have made a deal with Netflix however they wanted tiered pricing and Netflix said no. The Stars deal also didn't include enough money. $300 million a year is not a lot when compared to Dreamworks deal where they get $30 million per movie.