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Netflix wont become a lucrative monopoly because they own/control neither the content that they distribute (except for the few shows they produce) nor the distr
by seunosewa 11y ago
Netflix wont become a lucrative monopoly because they own/control neither the content that they distribute (except for the few shows they produce) nor the distribution channel (the Internet). Moreso they have no pricing power; they faced a huge backlash the first time they tried to increase their subscription fees and only just managed to raise it by $1. Unless they can convince their customers to pay much more so they can sponsor and buy much more content, Netflix will be at best the largest among a group of streaming services you have to subscribe to to get all the content you want.
- Consultant32452 11y agoI think that works until the cable companies essentially become defunct. Once that happens Netflix, being the 500lb gorilla in the room, will be the highest bidder for your content even if Netflix is the lowest bidder per view because Netflix will have all the eyes. Showtime is now available as an add-on to Hulu. It will be interesting to see how this model works out for them as opposed to the HBO self-streaming model. I suspect the end game will kill off both of those models because, again, I speculate even if the per-view revenue via Netflix are lower your over-all revenue would be higher.