Killerkiwi2005:your assumption here is that Netflix pays a proportion of each subscribers revenue to the content provider.
That is not the case. This is Quickflix's main point. Did you even read the letter?
Almost all of Netflix's content deals are on a flat fee regional basis (i.e. pay $xm for the rights to stream in the USA, pay $xm for the rights to stream in Canada etc etc), and do not fluctuate based on how many subscribers they get.
This means that every incremental subscriber they get for regions where they have not paid the rights, is pure profit for them. They don't pay any extra to the studios.
So what? thats the studios call to have agreed to a fix fee, if the are that worried they would go for a few cents per play fee like spotify
I choose to stop here, you seem to believe the current mainstream distribution model is fine, so I agree to disagree and its sunny outside
Nope, I'm just saying Quickflix have a valid point that Netflix aren't playing by the rules, and that what they are doing is tantamount to copyright infringement.
(FYI - I use Netflix too)