Netflix's public apology, and ensuring announcement that the DVD service would be split off into its own service, called Quickster, have been met with a public reaction the company should be getting used to: disappointment, frustration, and scorn. But in the following days, the company has signed up two big content partners--Discovery and Dreamworks Animation--to help keep their streaming video service attractive to customers.

Netflix Not Dead Yet

Netflix hasn't had a good summer. First they had the price hike announcement, and the outrage from consumers that followed. Then they annoyed a few more customers by enforcing an old rule disallowing multiple streams at the same time on one account.

Even their attempt to apologize for these missteps was panned by consumers, who found it to be too little too late, particularly when coupled with the bizarre decision to rebrand and spin off their DVD service.

And yet, despite all these screw ups and mistakes, Netflix is far from dead. Sure, they've lost a lot of subscribers, and many more are still considering leaving. But compared to their competitors, they still have huge subscriber counts.

And Blockbuster/Dish fumbled their chance to capitalize on Netflix's errors by launching a similar service with glaring flaws of its own--namely, that you have to be a Dish Network customer to use the new Blockbuster service, along with the fact that the service's streaming portion is severely lacking in content offerings.

For Netflix, Content Is Still King

So it's a pretty big deal that, in just the last few days, Netflix has managed to sign major content license deals with the Discovery network of channels and Dreamworks Animation studio. The Discovery deal will bring content from cable channels like Discovery, TLC, and Animal Planet. The Dreamworks deal, which will bring the studio's animated films to Netflix starting in 2013, will include new releases and existing hits like Kung Fu Panda.

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The Dreamworks deal is noteworthy because it's the first major Hollywood studio that will see new releases given to Netflix instead of the traditional pay per view television model.

As I have been saying all along, even bad PR like what Netflix has accrued this summer can be overcome if the content is attractive enough. If Netfli bests all the competition in signing up the best top movie studios and television production companies, a great number of customers will come back--or be talked into staying in the first place.

If anyone wants to carve out a piece of Netflix's market share, now is the time. But you'll have to have a service that beats Netflix on price and content selection, and so far... that seems to be a tough combination for anyone to achieve.

  • David Schmitt

    I'm loving the TV shows they are adding lately to stream. We're having trouble keeping up! Now if they can only get some deals with HBO, Starz and other specialty channels, that's where all the good stuff is.

  • Jasmine Light-Soul

    Unsatisfied with Netflix service and price? Check out! Instantly download or stream unlimited films straight to your phone, computer or TV for only $7.99/month, or sign up free with the pay as you go option. FlixFling manages your movie libraries for you and makes your content available anywhere, anytime. They also allow multiple streaming on one account at the same time which netflix does not. Definitely worth checking out!

    • Rob Martin

      What are you talking about? Netflix totally allows multiple devices to stream at one time on the same account. I do it every day.

  • BlogAid via Facebook

    Wondering if this content is aimed more toward family audiences, specifically at kids. They seem to have plenty of that sort of content already. ~ MaAnna

  • Mark Robertson

    Thank GOD. This makes me much more likely to continue my NetFlix service because as it currently stands, I could care less about the content that they have. I've seen every movie or TV episode that Id want to see (there are soo many that SUCK). So, it will be nice to see some new content.

  • Roger Harris via Facebook

    Their basic weakness is massive competition for streaming content, which is now their avowed strategy. That is, their new business model is much more vulnerable to competition. They might have been better off sticking to their original service - DVD's by mail and their algorithm that provides excellent suggestions.