Are Netflix’s Recent Problems a Sign of More to Come?

Jun 21, 2011  •  Post A Comment

With Netflix’s recent problems — including a website outage and a contract dispute leading to Sony films being pulled from streaming — some observers are wondering whether these problems are a sign of more to come, writes CNET’s Larry Dignan.

Netflix is in effect now a huge distribution channel in its own right, and it’s likely the site will be subjected to the same forces that affect the cable industry, the article notes.

"In many respects, Netflix is a cable network. Cable networks sometimes pull content over disputes," the story says. "With the Netflix-Starz deal expiring in October there will likely be some threats ahead that could damage the $7.99 a month streaming content service."

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