Use access key #2 to skip to page content.

2good2betrue (< 20)

nflx content key to its future

Recs

0

February 10, 2011 – Comments (1) | RELATED TICKERS: NFLX

Cable doesn't believe it competes with NFLX, so it doesn't believe it needs to package content in the same way as NFLX. Note, cable does offer subscription services that you pay in advance for rather than pay in the rears (after you have consumed the service for a month). The only risk cable has is if you don't pay for your VoD or PPV services.

Actually, cable either offers today or is in the process of offering users the ability to extend their viewing of content outside the living room - onto their mobile devices, cars, and laptops. The other aspect to consider is who owns all this content NFLX is seeking? NFLX and redbox are increasingly at the mercy of content providers like STARS, HBO, etc. - much of which is owned by cable companies. So, when people hype NFLX as commanding more attention, do your due diligence... there is a juggernot in its future that will not go away quietly and will ultimately dictate pricing, margins, and marketshare for lowely NFLX. I don't like the thought of it, but again, do your own investigating. The writing is on the wall for NFLX unless it can raise more money and gain command of what is left of content - OR - engage in expensive, lengthy discussions with FCC over fair rules of play in its business. The whole streaming side of the house is one big cloud of white smoke - particularly looking any direction into the future.

1 Comments – Post Your Own

#1) On February 10, 2011 at 9:45 AM, cthomas1017 (98.69) wrote:

Cable knows that once nflx becomes a real threat that all they have to do is change their subscription plans to throttle bandwidth into homes and local businesses.  nflx's business model is predicated on virutally unlimited bandwidth into the home. at&t throttled bandwidth to the iphone by changing their rate plans.  you can expect cable companies to do the same thing as their infrastructure becomes more taxed from nflx & similar video streams.

Report this comment

Featured Broker Partners


Advertisement