Before I begin my take on this, read the full story HERE.  Is Netflix really going to re-focus its business on DVD? My guess is no.  This seems like an effort on their part to make them stand out from the competition – mainly Amazon and Hulu – by restating their streaming and DVD rental options.  Currently, Amazon and Hulu do not have this option so Netflix needs to stick to what has worked and reiterate to potential consumers what their subscription model is all about.  Smart Play.

My understanding is that this “re-energizing” was also – dare I say it – a ‘saving face’ in order to not further alienate their core physical goods customers.  Being a Netflix subscriber myself, I remember a couple of months ago when they removed the “add to DVD queue” from their streaming platforms on Wii and others (SEE THAT STORY HERE).  This was not taken well by their physical DVD customers who were paying for both options to be available .  Now subscribers who use Wii and other set tops have to log on to their computer to be able to add DVDs to their queue. By publicly saying they are making a commitment to DVD, they are making these subscribers breathe easier.

Put it this way – if they were not fully committed to streaming, why would they contemplate paying a reported $350 million for the Starz catalog?