Originally Posted by mgkdragn
.. now, if NF would just anounce some major content deal, most of the haters would fade quick ..
If they coulda....they woulda....
99% of content is owned by just 4 studios. You think they don't talk amongst themselves?
Edit: Some more thoughts. Netflix is actually killing what made it "Netflix". You cannot build a business model on what someone ELSE owns, with no long term deal in place. Keyword - long term. Like 20 years. What's the cost basis that Netflix is using to price it's content?? Do they even know? Is it a SWAG? Educated guess? Shot in the dark?
Unless you know exactly
what that content is gonna cost you for the foreseable future, you cannot price your service correctly. And when you don't and start increasing prices because your content lords aint happy with you, you piss off your customers.
Netflix may have been the first to the streaming video market, but streaming video is a very replicable model. The infrastructure is cheap and easily quantifiable. The content is not. It takes someone like Steve Jobs to make the studios bend over. And Apple and Amazon are sitting on more cash
individually than the market cap
of Netflix. It's a numbers game and money wins.
Netflix IS doomed.
p.s. And I put my money where my mouth is.
When the news about the Starz deal broke, I immediately turned around and shorted Netflix at whatever they were trading at. Turns out it was $263 and change.
I could pay for 100 years of Netflix subscriptions with what the stock's trading at right now. And I still haven't covered.