Big media conglomerates control two key areas of television -- sports and other live or first-run programming such CNBC and movies. That makes it impossible for Netflix to ever truly break through, unless of course it really breaks through. But, even if the climate made it possible, Netflix could never afford to offer such a slate. As I explained yesterday (see link in first paragraph), it can barely afford what it has now. The numbers still do not add up. Yet, Netflix claims it will not raise prices. So then what will it do to survive? Outside of massive -- and I mean massive -- domestic and international subscriber growth or additional revenue lines such as advertising, e-commerce and on-demand a la carte options (things Reed Hastings says he 100% opposed to), what can Netflix do? It can sell its DVD division, find a buyer with a ton of cash or go to Wall Street like it did just over a year go for a lifeline. Again, all things Reed Hastings probably can't get quite comfortable with.
But, Reed, as much as you would like it to, the world is not going to roll over and do what you think it should do. Growth has hit a relative wall. As much as I can't picture it, I can imagine a situation (if that makes sense) where Hastings has no choice but to reverse course and institute a price hike. But there would be mutiny in America! Listen -- you can screw up so badly in Washington that you put the nation on the brink of recession. Most citizens barely pay attention. Raise prices on an "entitlement" the country actually cares about and you set off a social media firestorm disingenuous YouTube apology videos are made of. Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.