Netflix doesn't have enough revenue (and never will at current pricing) to create the vast amount of content it has access to.
It has so far relied on content creators treating their IP as essentially "used up" after it aired and was released on DVD. Netflix wasn't seen as a competitor but as another was to price discriminate to wring out the last drops of revenue.
But now Netflix is starting to cannibalize TV views, cable subscriptions, and DVD sales. As the revenue from traditional sources decreases either 1) nobody will make expensive content or 2) Netflix will have to pay more to make up for it.
It has so far relied on content creators treating their IP as essentially "used up" after it aired and was released on DVD. Netflix wasn't seen as a competitor but as another was to price discriminate to wring out the last drops of revenue.
But now Netflix is starting to cannibalize TV views, cable subscriptions, and DVD sales. As the revenue from traditional sources decreases either 1) nobody will make expensive content or 2) Netflix will have to pay more to make up for it.