I love Netflix. It's awesome. The problem is that it costs too little. This makes me instantly unpopular but let's face facts. Remember when you used to pay subscriptions for magazines. You would either pay a subscription for each magazine or a bundle. One thing that didn't happen is that you wouldn't pay 8 dollars and get whatever magazine you wanted.
I know there are more costs with physical goods but Netflix won' work on the same principle. Simply the producers don't get enough money. What would work is 8 dollars for the base and then another 8 for ShowTime, HBO etc. This way they could actually make money with what they produce. For the most part the new digital model doesn't really affect the top shows. But what it does affect is the middle shows. It pushes all the money to one end. There are lots of shows that were possible under the cable model but are not possible under the Netflix model. If anything Netflix should cost more like 20-80 dollars a month. I know that sounds a like a lot but in reality this is what it needs to be in order for traditional companies to mosey over to the new side.