Cable TV took another death blow this morning, with Netflix forging a distribution deal with Relativity Media. Netflix, which has been proactive about maintaining its relevance amidst the changing digital times, is getting a head start with the deal, as Relativity Media has bypassed cable distribution to seal things with the movie rental service.

On-demand. That’s what it’s all about. As we’ve long awaited, consumers are winning the stand against major media operations. The deal between Netflix and Relativity Media is exclusive, giving Netflix rights to distribute content after the mandatory DVD wait-period ends. How fortunate to find a system that works for both the studios and the second-tier distributors. From VentureBeat,

Ultimately, Netflix’s agreement with Relativity could permanently shift the landscape between studios and premium TV networks — particularly since those networks are gearing up to renegotiate their deals with studios around 2015. In 2008, Netflix signed a three-year deal with Starz to bring much of its content to streaming service. The Relativity deal is the next logical step for Netflix, and it most likely won’t be the last.

Warding off the bloodthirsty comptitors

Which reminds us of the brutal battle going on industry-wide. Bigger deals, more cooperative technology interfacing and growing consumer demand has forced big media companies to find the best way to distribute and monetize movie content, and someone will have to get left behind, be it cable, Blockbuster, or anyone else.

Netflix’s deal was preemptive of Blockbuster, as are most of its strategic moves. As Blockbuster stock drops, the Netflix rival struggles to stay afloat, expanding its rental kiosks. Cable is better off than Blockbuster, with distribution deals with classics (HBO, Showtime), as well as newcomers such as Netflix. As cable companies find themselves irreversibly attached to web-based media portals, those that already had a stronghold in media distribution have erred on the side of caution.

Beyond cable, other large media magnates are seeking harbor with growing interests in theater investments, new products and new marketing ploys. From 3D film successes to home televisions, manufacturers and marketers have helped retain consumer interest in movies. Turning that into profit means latching onto the growing array of access points across our multiple devices.

Media and technology convergence

Microsoft and Sony are combining their game consoles with movie distributors, while Hulu incorporates subscriptions into its web-based hub. Apple TV is due for an update, in-part warding off whatever may come of Google TV, as it moves along nicely with its campaign to take over the world of media. As Netflix faces postal delivery cutbacks and crowding competition, it’s been smart to focus more efforts on digital distribution methods and consumer-centric services.

Nevertheless, the battle field is only getting bloodier, with Hulu expected to be available on Apple TV soon. Even as the hype around Google TV bubbles, Netflix is in a good position–Google’s primary focus is advertising, and it may take a while for the company to compete with Netflix in terms of overall reach, even if it’s turning some major profits. See a recent commentary on Google and Netflix’s focal points at GigaOm.