> The main problem of Netflix, more than competition, is quality of content.

How fair is that though? Who's to say that we wouldn't find the quality of content of CBS/NBC/ABC to be equally as bad if we had it comprehensively laid out in a nicely engineered UI like in Netflix? In the previous model, most of us didn't watch TV for huge chunks of the day and simply weren't around to see if the television was good during those chunks.