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Non stop bad news on netflix. Its not easy to produce such a good content. I really wonder if apple can do it. From technology standpoint it can beat but i wonder on content. Disney has a chance though. Last but not least, playing game with lower subscription fare is not gonna work long term for these companies. Though i see Netflix is being beaten i still feel long term winner would be netflix. The question is by then how much will it drop and regain? comments?
On the point about long term low prices, Apple has a lot of cash to burn.
Yes they have. Do they wanted to burn for the sake of burning it without making profits unless they see a up sale with low subscription fees?
With their focus shifting towards a more service based business model, I can see them burning some cash to gain market
But you’re still at Salesforce 😂
Doesn’t matter. I am hard core streamer and picky on the content.
I think content owners are becoming increasingly protective of their ips. They played coy and acted friendly for years to get their content out there through distribution partners, whether linear TV or through folks like Netflix. But I think they eventually reached a conclusion that it doesn't actually matter how their content is distributed; their fans are willing to go where ever to watch it. So why give someone else a cut of the pie when you don't have to? It's the same concept as game companies selling games through their own launchers instead of through Walmart. You basically disintermediated the middle guys cause there was no longer a reason for them. I think same is happening to traditional media. Netflix will likely continue to suffer unless they can make another big hit again like house of cards. But it's not always so easy to do so
The idea is not wrong. But most services can't make it without scale. Every goods can sell through their own website only, why do they end up paying Amazon?
I think it's a bit different for physical goods distribution right? In a classic mgmt consulting framework, the question is basically can the future profit from undercutting middleman outweigh the current cost of setting up distribution system. As it pertains to physically shipping goods, thats just a damn hard business to get into and so there's no sense of getting into that business. You can outsource low margin distribution to someone else when you can focus on more value added initiative. But for digital distribution, it's a different story. Companies like steam and epic, as well as all the other major pub devs pushing their own game launchers and going direct to download has in essence killed gamestop. It's the same as Netflix originally killing blockbuster. So for the past 10 years, I'll agree that the Netflix scale meant everyone put their content out onto Netflix for maximum viewership and scale. But now that people are realizing that their viewers are die hard fans who will go anywhere to watch their content specifically (or so they think), then people will once again ask, wait... Why do we need Netflix as the middleman again if we can create our own streaming service given the tech is widely available now
@OP and others, what are you thoughts on Amazon Prime Video in this race ? Given the recent Emmy results ( HBO:9 , Prime Video :7 and Netflix : 4) , I believe Amazon too is a major player now
My view is that Amazon is playing an entirely different game. Similar to Google, msft, and now fb, they're playing the ecosystem game. Amazon video doesn't need to do all too well by itself. It just has to be offer an incremental benefit that is strong enough to potentially sway users to adopt prime and become a life time user of the ecosystem. Netflix however, is not an ecosystem, it's a purely stand alone product that doesn't have synergies with anything else
I would’ve agreed with you a year ago . But given the amount of content and quality ( hence the money spent ) , on “Amazon Originals” does not indicate so . I’m sure Amazon does not intend to beat Netflix in the content game , but it surely wants to be a competitor in this space .
Pardon my ignorance, what happened to Netflix?
Disney and Apple happened
Nothing happened to Netflix. People are just blowing hot air
The competitive edge we have, for now, is that we are both a studio and a tech company with big presence in both LA and Silicon Valley. At the end of the day, we are just pushing data around. It use to be moving media files from vhs to dvds. Then it was moving from physical dvds to the internet. Now it’s all about moving mass around of data both from studios to some storage medium and then streaming to the world. This infrastructure can be easily copied. Some companies like apple can do it faster and maybe even better than, say...Disney. Netflix need to learn how to make films, ideally before all the other platform takes off from a tech perspective. Content is a huge focus. Winning awards is important but what really defines good content... who knows...glad it’s not my job to figure that one out.
Nice insight 👍
The tone on the street reflect this exact concern. Everyone wants to know how Netflix will perform as a movie making company instead of a streaming platform. Content, content, content. The negative stock performance means investors aren’t confident right now in Netflix ability to make good shows to rival really..... just Disney. Imagine if we had something that can rival Star Wars or Marvel. Our shares would be at a very different place.
Plenty of profits to be had in this space. I don’t think there will really be one single winner vs winners of different audiences. Netflix has enjoyed basically a monopoly for a while. I think that will end, but I’m certainly not thinking “Poooor Netflix” because they have competitors on the way. With all the $$$ on the line, they had to know it was coming.
Sure did.
All Netflix needs to do is announce a super basic plan for $4.99 with limited ads like Hulu and announce an ad platform. Then stock would bounce back three fold. This social sentiment in market is too stupid.
Uncertain whether Netflix could do that as they dont have an in house ads team and doing that would take a lot of work. Also, pricing down may mean cannibalization their more lucrative subscription business which may easily backfire. Not to mention potential price war
Yes, because the race to the bottom works so well.
Hulu is losing money. Netflix is profitable. Dummy.
i mean, apple did pretty good with monopolizing digital music sales. But, Disney is a media producing powerhouse. 🍿
Apple Music sits behind Pandora, Spotify and I Heart in terms of subscribers. Also, music is vastly different, and far cheaper, than original content.
Sales, not streaming. But, good point on production cost.