Netflix is an industry mover and has become a trendsetter in the online entertainment scene. But, its business model is looking to be the main source of their misfortune at this point. Netflix has a parallel paradigm as Amazon.com, but what sets them apart is that it does not own anything. Their profit relies on selling other company’s content. Now, with the departure of Starz from Netflix’s roof, the online streaming enterprise is left to fill in the gap that the biggest content provider of movies and content left. The breakup was brought about by Netflix’s disapproval of Starz’s request to increase price premium of monthly subscription fee that now stands at $8.This was after Netflix offered its most prized member 10 times the amount stated in the previous contract, which summed up to $300 milliom.

Just last July, Netflix announced a 60% price augmentation. Although this amount still dwarfs compared to DVD costs, users have aired their sentiments online. In a PCworld article, the number of responses on the issue are quite startling: “Still, the complaints piled up: Netflix’s blog post that explained how the company was separating streaming from DVD plans closed its comments section after 5,000 posts, but kept the “discussion” alive on Facebook, where it now has 81,683 mostly negative posts (and 1,429 “likes”). And even if all 86,000 of those people ditched their accounts — or went to Blockbuster, which is laughably delicious — Netflix has more than 25 million members in the United States and Canada, so a few thousand defections won’t hurt its bottom line that much.”

The same month, Netflix was able to divert attention of subscribers to the new subscription plans that sounded like wireless carriers. They unveiled an unlimited DVD plan solely for US customers. Anything unlimited these  days may be music to the ears. In August, the company expanded their services to Eastern Europe and landed in Spain.

Movies and television streaming is gaining solid following from all parts of the world and could be ushering the tech community into another era that will alter the way we enjoy and create motion pictures. But while this is true, the current economic turmoil still plays a big part in decision-making of users for their entertainment needs. Netflix’ price hike could drive consumers back to DVD rentals like Redbox. Apple TV is also gaining momentum from the market’s positive reception. Competitors like Hulu and Youtube.com have strengthened overseas presence as the former goes to Japan and the latter launches video rentals in Canada.

Growth and success of an organization always attract competition. And for Netflix, there have been a swarm of contenders who are willing to learn. This scenario gives content providers like CBC and Starz more avenues to monetize their commodities for larger sum of profits. It is either they go with the highest bidder or sell their contents directly to consumers. With Netflix being just a plain hub of trade, they could fall behind the race to the checkered flag of online video streaming.