For the past several months, media industry leaders either denied the impact of Netflix or saw it as a direct threat to their supremacy. In recent quarterly earnings report announcements, major players were praising Netflix. As consumer behavior changes and the video on demand capabilities of Netflix grow more popular, networks are feeling increasing amounts of pressure to keep up with the times.

Partnering with Netflix for distribution of syndicated shows has proven to be profitable. Netflix purchased a four-year distribution deal with TimeWarner for $200,000 per episode to steam all 100 episodes of FX’s “Nip/Tuck.” It also created a similar deal with LionsGate to stream AMC’s “MadMen.” The deals are charting new, and potentially lucrative, territory for cable networks.

Netflix, along with Amazon On Demand and Hulu, is positioning itself as a solution to use old content in new ways. It is difficult for networks to sell syndication rights to other networks. With the rise in original programming on cable networks, Netflix deals could be a way for production companies to get more mileage from their original shows. There’s already a market for the content and media companies want to get the most revenue out of those shows.

However, despite the TimeWarner and LionsGate deals, some media executives are concerned that making Netflix more appealing will encourage more people to drop their cable service. In 2010, the total number of U.S. homes subscribing to a television service dipped for the first time since the introduction of cable television. If cable television numbers drop, the entire television business model could be changed or revamped.