What an awful idea. Netflix had to make some bad deals that it now has to live with. They'd also have to deal with the dying DVD business that has nothing to do with Verizon's business model. They'd likely have to find a buyer for that and spin it off. Maybe that's what Netflix was trying to prepare for with quikster.

Netflix owns nothing. Any exclusivity is small and worth very little. There is no value there. If you're a streaming customer, there's nothing keeping you with them once someone comes out with a competing service at a lower price.

Netflix is a distributor that can easily be replaced by any of the big guys: iTunes, Amazon, Microsoft, etc. If Verizon wants to get into this game, they should partner with a big guy who can build the distribution network for them.