Netflix is cutting the company in two. No longer will frustrated users of Netflix streaming have the DVD/Blu-ray service as a safety net. If a title isn't available on Netflix streaming, you have to go elsewhere. The synergy is gone, and now Netflix is just another streaming video service. Netflix is underestimating the value of that safety net to people new to streaming video services - particularly those interested in reducing their cable/satellite bills.
Netflix has fumbled the ball. Someone just needs to pick it up and run with it. Maybe someone at Amazon is paying attention; adding Blu-ray rentals to their video streaming service might give them a competiive edge. Opportunity is knocking . . .