Yes. Netflix can rent physical DVDs without negotiating with studios or distributors. In theory, they could run to Walmart and buy DVDs to mail out. They need nobody''s permission to do this. With streaming, they are at the mercy of the studios. Studios who want to offer their own streaming services.
The death of DVDs could equal the death of Netflix. It may or may not play out like that, but DVDs have been very good to Netflix for the simple reason of not having to enter into any agreements to do their core business.
There are any number of entities that would love to see Netflix fold. The way to do that is through license fees. They can turn the screws.