My theory is that Netflix's low price is their strategy, not a mistake they wish they could reverse. Jeff Bezos said "your margin is my opportunity". Netflix d

My theory is that Netflix's low price is their strategy, not a mistake they wish they could reverse. Jeff Bezos said "your margin is my opportunity". Netflix doesn't leave a margin for competition to undercut. No-one can compete with Netflix by offering a lower price. And since Netflix has such a huge lead in number of subscribers, they have much more money to spend on quality of service (more content, better technology). Low price works great for Netflix. I don't see any new entrants competing with them (other than more content owners like ABC, CBS etc. trying to do what HBO did, but it's really not the same thing as Netflix).