Maybe for the time being. But the networks better wake up and smell the coffee. Already, carriers like Netflix are beginning to produce their own content. I'm currently watching the series called Lilyhammer, Netflix' first original series. I saw a blurb at Amazon.com that was calling for scriptwriters to submit scripts for original content to be produced by Amazon. It's the wave of the future.
Netflix isn’t going to ever drop the rest of the world for their own content, they produce their own stuff so they’ll always have something that’s immune to contract negotiations. Look at HBO, they produce tons of their own content, and still buy movies. No matter how much Netflix produces, no matter how good it is, there will still be a market for selling Mad Men and Breaking Bad (or the equivalents in the future), so they’ll either buy that content to sell to us or somebody else will.