"...A lot of the movies are not available for streaming."
Quite a lot, actually, including the majority of new releases. And this will only become more evident in the eyes of streaming subscribers when they no longer see most of the new titles listed in searches. (Even the presence of those "Only available on DVD" titles in streaming-service SERPs lent a sort of subconscious, psychological indication of the robustness of Netflix's library).
Hard to see what Netflix stands to gain here. Streaming may be the future of media consumption, but there are still a few big hurdles to leap. Placing all the eggs in the streaming basket now feels a tiny bit premature. It's entirely possible now that streaming will win the day, but it'll be a competitor (or two) waving the victory flag.
I'll be interested to see if the split compels media companies to make more content available for streaming. Perhaps that's part of the logic behind splitting out the business; Netflix may have reasoned that it will put more pressure on content holders to license that content for streaming if it won't be available on Netflix at all anymore. In this scenario, it seems that Netflix may be throwing the DVD arm under the bus in hopes that it will strengthen their streaming offering.
if that is their intention they're going to be an far rude awakening. Netflix's subscription-based model will never support the new releases that are currently offered on pay-per-view sites. They are now also going to be competing with cable companies who will most likely always beat them with new releases. They should've just made their DVD operation more efficient. The intangible value added to the company is completely underrated.
Quite a lot, actually, including the majority of new releases. And this will only become more evident in the eyes of streaming subscribers when they no longer see most of the new titles listed in searches. (Even the presence of those "Only available on DVD" titles in streaming-service SERPs lent a sort of subconscious, psychological indication of the robustness of Netflix's library).
Hard to see what Netflix stands to gain here. Streaming may be the future of media consumption, but there are still a few big hurdles to leap. Placing all the eggs in the streaming basket now feels a tiny bit premature. It's entirely possible now that streaming will win the day, but it'll be a competitor (or two) waving the victory flag.