What Is the Future for Netflix after Losing Thousands of Starz Titles?
Is this just another bump in the road for Netflix? The timing of this also coincides with Comcast's announcement of a cheaper rival product, Xfinity Streampix.
Here's the thing: If Netflix's new business position of making original content is successful, I think they will have a decent thorn in the side of any competition. One thing Netflix has going for it that many other competitors don't quite have is that it has spent a lot of time getting its brand into a lot of consumer electronic products (like almost ever new DVD player now, XBox, etc.) So, they are ahead in that game. They recently hired HBO's content chief who was responsible for shows like the Sopranos and Sex and the City, when HBO owned Sunday nights. If they can put out 'must watch tv' content like HBO did in the early 2000s, they will be right back in the game even stronger than before. It's a way and see situation.
2 Additional Answers
Sean Stickney(RN, Traveling Nurse, CrossCountry Travcorp)
Netflix's has a great idea and expanded on it video's on demand that can be watched on any device. Video game systems were the start now we can watch videos on smart phones and pads. I recently purchased a device the size of a smart phone that attaches to Netflix through WiFi to my TV. Netflix will only continue to expand. Not everybody likes the idea but Netflix has a strong brand.
I'm not very bullish on Netflix's future prospects. I was a long time customer and investor. To me the critical success factor was making the transition into mainstream, box office content. I realize that the studios are loathe to cannibalize their other distribution channels, but this reluctance has severely undermined the Netflix value proposition. Moving into original content is hugely risky. It is not their core competency. They are a technology and operations company. Not a creative house. And not a killer producer.
Netflix is facing a Tsunami of new competitors and potential entrants. Amazon has an online service and strong negotiating leverage with studios. Apple has the same. Every major cable service is offering movies & TV shows ondemand over the web. And there are at least 12 technology companies offering 'Over The Top' capabilities to transform every studio (and every website for that matter) into a mini-Netflix. Most importantly, I believe its just a matter of time before Facebook rolls out their own service. After all Facebook is all about online entertainment and they have the largest audience in the world.
I was a big fan of Netflix for years, but unfortunately I fear their days are numbered.