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Netflix’s financial flexibility is quite limited, while Amazon’s is virtually unlimited.

Jeff Bezos didn't get rich by losing money. The licensing cost alone for all the content people want is higher than the current price of Netflix streaming.

No small relevant matter that Netfix runs on Amazon's EC2

http://techblog.netflix.com/2010/12/5-lessons-weve-learned-u...

Well the tax issue really does add to the likelihood. So what happens, Hastings retires?

Reed Hastings could run Quikster!

Netflix To Sell Streaming Biz To Amazon, Analyst Theorizes - Forbes