Supposing Hastings is right, what will the cable companies do with their purpose built cable networks?

Hastings says the video businesses of cable and satellite won't be immediate. "My mother will always buy traditional video," Hastings says. "It won't go away tomorrow--it will have a long tail." Reed says the cable and telephone companies may not be that sore, in the long run, about getting out of the content business. They will become increasingly happier as Web video makes people want to buy more of their highly-profitable cable broadband services.

Hastings' plan makes sense to me, except for one thing: His version of the story seems to involve a lot of wire lines. When thinking about the next generation of telecom and entertainment buyers, I feel sure that they will demand the mobility and flexibility of wireless services and devices. But really, that is the problem of the companies that sell broadband, not companies like Netflix who will package and sell the video content.

Netflix began as a subscription DVD-by-mail service, but later launched a Web video service.