Netflix (NASDAQ:NFLX) critics like to point out that the company doesn't actually make anything. The movies and TV shows that are the streaming video maven's lifeblood all comes from third-party sources. Yes, even the so-called "Netflix original shows." Orange Is the New Black comes from Lions Gate (NYSE:LGF-A), French media veteran Gaumont films makes Hemlock Grove, and so on.

The idea is simple: If Netflix doesn't actually make anything in-house, like Time Warner's (NYSE:TWX.DL) HBO does, then the studios will eventually drive up prices and squeeze Netflix out of business. It's an HBO and Walt Disney (NYSE:DIS) world, and Netflix just lives in it until the studios decide otherwise.

But it ain't that easy to build a world-class distribution network, even if you're a powerhouse in the predigital movie world.

In this video, Fool analyst Anders Bylund presents a quote from DreamWorks Animation (NASDAQ:DWA) CEO Jeffrey Katzenberg, which explains the real balance of power in less than 10 seconds.

Fool contributor Anders Bylund owns shares of Netflix, but he holds no other position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+.

The Motley Fool recommends DreamWorks Animation, Netflix, and Walt Disney. The Motley Fool owns shares of Netflix and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.