Netflix has started to create their own shows for their service that directly completes with the likes of HBO and many other big studios. Reports from CNET state that HBO has halted providing Netflix with DVDs from their warehouses. This could be a huge public blow to Netflix and their future. Netflix would still be able to acquire HBO DVDs from other third-party resellers to keep discs going out to their DVD-BY-MAIL customers. This change may have gone into affect starting the 1st of this month.
Netflix will have higher costs to get those DVDs from another source than straight from HBO and this may eventually lead to a consumer price hike in the future, given the price change track record of Netflix in the past year. The CEO of Netflix, Reed Hastings, should have just kept Netflix as a rental service because this can only spell of bad things to come in addition to Netflix losing Starz content later next month.