Netflix: raising fees and being bullied by content provider?

Just read an article on Netflix about how customers are really angry with the company raising monthly subscription fees for the DVD + Streaming package. It is an attempt for Netflix to move towards digital streaming vs. the actual DVD distribution. Customers was not happy about that. Granted, streaming digital content online is good economic because the marginal cost to produce additional unit = 0. Yet, Netflix is facing another mounting challenge. As Netflix is becoming more and more successful, in which it posted $750million in revenue this past year. Many of the content providers saw it as a chance to chew this company out and squeeze more juice out of it. Now, as I just saw in the news, these content providers want to increase license fee on Netflix. It is estimated that the content license fee will go from $180million in 2011 to a staggering $1.2 Billion in 2012.

Netflix is in deep doo doo.....