Right now, Netflix still has a relatively nice niche. They are a streaming service available through a whole range of devices (from PCs to the Wii), with low entry costs plus a relatively wide selection (which may change). Nobody else quite does that – Amazon has the up-front $79 for Amazon Prime, Blockbuster’s is only for Dish subscribers, “TV Everywhere” requires a cable subscription, etc.

Sure, they might get hurt if the content providers really cut back (or embrace their own streaming services), but no one is really edging into their niche that well yet, not even Amazon Instant Video. Especially since Netflix is often an (admittedly imperfect) method for cable cord-cutters.