When Netflix first started, they were able to buy the streaming rights to old movies and TV shows for cheap, because executives thought they weren't worth anything. Now those contracts are expiring, and the studios want to jack up the rates or start their own service. Netflix is also getting squeezed by ISPs like Comcast, who want to charge them for the right to deliver video to Comcast's customers who already paid f…
No kidding about Comcast - Streampix? Talk about derivative naming. And it's priced to kill Netflix at $5/mo for cable subscribers. I'm not so sure about the pirating scene - while big content providers likely will never kill it, they seem to have lawmakers in their pockets, and so will criminalize it as much as possible - expect draconian measures to destroy the most dangerous threat to big content providers.
It's hard to compete with free. At the moment, Netflix does a pretty good job. HBO might too if they can fully disentangle from cable. If prices get higher, or the content individuals want gets spread across too many streaming services people will watch less and/or pirate more.