A Look At Netflix’s Plan To Woo The Studios With Digital Distribution

Amid increasing speculation about which company would be an ideal suitor for Netflix (NSDQ: NFLX), comes insight into how the movie rental service plans to build longevity into its business — a bid to maintain its independence, perhaps — by brokering digital distribution deals directly with Hollywood studios.

Netflix continues to deliver profits and strong revenues quarter-over-quarter and year-over-year, with much of that growth being driven by digital distribution (streaming and downloads). But as CEO Reed Hastings has maintained, the company needs to be able to deliver access to more new releases in order for its digital business to scale in a sustainable way. So that’s where Chief Content Officer Ted Sarandos will devote much of his time next year.

“Doing business in Hollywood is very much built on trust and relationships,