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Video Nuze sez (I just had to spell “says” that way, since the source has imaginative spelling of its own!) that 2009 prediction #5 is that Microsoft will acquire Netflix sometime next year.

They admit it’s bold, but here’s the core rationale:

Microsoft has significant financial resources, but it lacks the ability to be a credible competitor in the broadband-to-the-TV race. Together, I believe they could turn Netflix into the single-most potent broadband competitor to today’s multichannel video providers. My bet is that in ‘09 the two companies will come to the same conclusion.

It sounds plausible, but I have concerns. Netflix is an amazing 11 years old, and yet it’s still unarguably cool. On February 25, 2007, Netflix announced the billionth DVD delivery.

It’s in search of a next-gen model, and has made significant progress including existing offerings:

Netflix has a “Watch Instantly” feature available to all eligible subscribers. The feature enables subscribers, at no additional cost, to stream near-DVD quality movies and recorded television shows instantly, depending on the subscriber’s internet connectivity. Initially, the feature offered subscribers one hour of media for approximately every dollar they spent on their subscription. (A $16.99 plan, for example, entitled the subscriber to 17 hours of streaming media.) In January 2008, however, Netflix lifted this restriction. Virtually all subscribers now are entitled to unlimited hours of streaming media at no additional cost. Only subscribers with a plan of $4.99/one DVD per month aren’t provided unlimited access to the streaming service. (They are allowed two hours). The new terms of the service are a response to the introduction of Apple’s new video rental services.

Currently t[Netflix's] Watch Instantly service features more than 12,000 movies and recorded television shows available. Major studios including NBC Universal, Sony Pictures, MGM, 20th Century Fox, CBS/Paramount, ABC-Disney, Warner Brothers, Lions Gate EntertainmentNew Line Cinema are all distributing films and television shows via the service. On October 1st, 2008, Netflix announced a partnership with Starz Entertainment to bring 2,500+ new movies and television shows to Watch Instantly in what is being called Starz Play.

These advances show promise but not splashy domination.

Is Microsoft the right match to bring the future to Netflix?

You tell me. Living in the Seattle area and having work experience with Microsoft, I’m tempted to say no.

I’m tempted to think Microsoft is truly an enterprise-only entity that has yet to find a way to understand and serve the consumer. How can it when all its dollars come from Business Decision Makers rather than consumers?

Microsoft makes no sales directly to users. Doesn’t that say it all about a possible Netflix-Microsoft deal?

Argue! Prove me wrong! I want Netflix to have all the best money and minds behind it as it goes forward. And I know firsthand that people at Microsoft are very smart. But Netflix — the beloved red envelope coming soone r than you hope into your mailbox — is like a relative I believe in and want to help connect to the right people.