So 6 years later, I do have to add that more studios are doing the qwerty strategy of streaming their own content. I believe this has more to do with cable cutting than trying to take down Netflix.
But as I said, it's an inefficient way to consume media. I prefer to watch from one platform instead of having to sign into each and every service and run their app.
Today we have 4 main services: Dish satellite, Amazon Prime, Netflix and Vudu. We stopped doing Redbox because although $1-2 is cheap to rent a BR, it's a hassle to go to the box, rent it, and then return it the next day (on more than one occasions we have forgot and incurred extra fees). We'd much rather pay the $4-6 on Vudu... although we also started using Redbox Instant but their platform is a bit behind in quality.
I'm wary about Netflix now because Disney/Marvel added tons of content to their library but since they are developing their own streaming service, not sure how that's going to go for them. DC Studios is also doing their own streaming and with AT&T merging with Time Warner, that makes another media powerhouse against the Dis/Marvel/Fox house. Netflix is going to have to play nice with those 2 in some way or they could be in trouble. And there is still Google with their YouTube TV service which also has original content from YouTube Red.
However it goes, it's good for the consumer as gives us options and may lower pricing, but bad because you have to go to numerous areas for content and adding up all the prices for those services ends up like a cable bill.
But Netflix will not go out of business, we are 6 years into USC's 5-10 year out of business prediction... and way past his $40 call. Good things he trades options.