Over the years, the company has been aggressively transitioning its business towards streaming while taking several attempts to marginalize its traditional DVD-delivery segment. Yet its customers do not seem to want it to go away, as seen in the uproar during last summer’s pricing/Qwikster split.
With the DVD.com purchase, it looks like Netflix is trying to find a way to keep the DVD business robust. It still is highly profitable, and should remain a key source of cash flow that will help pay for heavy investments for the streaming business — which is critical considering Netflix is facing a growing number of rivals like Amazon.com (NASDAQ:AMZN), Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL) and Hulu.
– Tom Taulli, InvestorPlace.com