The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.NEW YORK (TheStreet) -- On Wednesday, I wrote an article for TheStreet advocating that Netflix ( NFLX) needs to -- and will -- sell its DVD division in a bid to not only fund its streaming operation, but for survival. Hastings will likely spin it as part of his vision for the future, but the truth is the company will need the cash to fund that vision. As I wrote in that article:
One way or the other the DVD will help keep Netflix alive. The company will either need to flip-flop again and place a renewed focus on the service or sell it for what will amount to another bailout.
On April 26, 2011, we completed the Blockbuster Acquisition. We acquired Blockbuster operations in the United States and in certain foreign countries. Blockbuster primarily offers movies and video games for sale and rental through multiple distribution channels such as retail stores, by-mail, digital devices, the blockbuster.com website and the BLOCKBUSTER On Demand service. The Blockbuster acquisition complements our core business of delivering high-quality video entertainment to consumers. We are promoting our new Blockbuster offerings including Blockbuster@Home which provides movies, games and TV shows through Internet streaming, mail and in-store exchanges and online. This offering is only available to DISH subscribers.If a major movie studio and multi-billion dollar powerhouse snagged Netflix's DVD operations, the move would probably not change my opinion of the company's stock. That type of acquisition simply would not add enough to the bottom line at a TWX or DIS to make much of a difference, thus my thought is that neither will make the move. That said, from a strategic perspective, as well as a revenue standpoint, Netflix's DVD business - rejuvenated - could take Coinstar or DISH to the next level. It might even turn both stocks, particularly the latter, into strong buys.