How will Netflix Evolve?

Since its inception in 1997, Netflix has continually evolved to meet the demands of movie and television viewers everywhere. From building an impressive collection of DVDs for its 10 million subcribers, to losing its partnership with Starz Entertainment and many of its on-demand movies, the face of Netflix has always been a work in progress.

So what's next for the company?

According to reports, Netflix wants a piece of cable television real estate. In other words, it wants to produce new shows, not simply distribute yesterday's re-runs. It no longer wants to be relegated to the rental service category in entertainment. Netflix the actor wants to become Netflix the director.

The fact that the company wants to become a line item on cable bills everywhere is no secret, since Netflix CEO Reed Hastings has made several references to Netflix being like HBO. And from the looks of negotiations, Hastings may very well see his dream become a reality.

Partnering with various providers to create cutting-edge, original entertainment would certainly put Netflix several steps closer to competing with networks like HBO and other premium channels offering entertainment for a monthly fee.

This move to provide premium material, would only highlight the Netflix evolution. At one time, Netflix was simply the DVD-by-mail company known for banishing late fees and promoting convenience. Soon, it could be a subscription service right alongside giants like Time Warner Cable.

Joining the cable family would likely add even more subscribers to the over 20 million streaming subscribers Netflix already boasts.

The key to Netflix taking this next step and partnering with cable is quality, original content. Whether or not Netflix has the capability to compete with the bad boys like Showtime and Starz will be seen soon enough.

For now, I think one thing is certain. The sky really is the limit for Netflix.