This is why you want diversity in ownership of media companies:

Joystiq broke word this evening that Netflix stopped Xbox 360 users from streaming movies distributed by Sony Pictures Entertainment.

It makes no sense for a huge electronics company to be allowed to own media like this. This is a pretty obvious negotiating tactic, probably around getting NetFlix for the PS3 and preventing the Xbox from having a living room advantage.

Usually, it has been to Sony’s extreme strategic loss to own these media companies. This ownership killed their Walkman line: here you are creating a media player that, you know, might be playing music pirated from the other parts of your own company. Better put in some exotic extremely distasteful codecs that no one wants to ensure that the media only comes from physical CDs.

Oh, and put a rootkit onto our CDs so that we can prevent people from ripping them.

Dumb. And now their stupidity spreads.

Sony should be forced to sell off their media assets.

Original story: MTV Multiplayer » Netflix Speaks Out On Sony Movies Disappearing From Xbox 360 Service — It’s Not A Glitch

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