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Netflix used to be a neutral pipe, just like Comcast. The trouble with pipes is that they hate being pipes and they always aspire to being a content creator. Wh
by dreamcompiler 8y ago
Netflix used to be a neutral pipe, just like Comcast. The trouble with pipes is that they hate being pipes and they always aspire to being a content creator. Whenever that happens, they instantly have a conflict of interest and cease being a decent pipe.
So far my house's plumbing system hasn't tried to get into the beverage business, but I expect it's only a matter of time.
- EpicEng 8y ago>Netflix used to be a neutral pipe Netflix has never been a "neutral pipe". Their business model is to curate/acquire/create content that people will pay a monthly fee to watch. How does that in any way resemble an ISP?
- harperlee 8y agoNetflix started business lending you dvds by mail. They were providing all content they could get their hands on, not curating (except if you call Blockbuster or any other videoclub a "curator of content", based on the fact that they did not have any film on existence). So yeah, they were a "neutral pipe" until they started creating content.
- dragonwriter 8y ago> They were providing all content they could get their hands on No, they weren't. Even Wwith DVDs, they had selection criteria. Though, sure, until streaming—and until streaming got competitive—breadth was a bigger selling point than it is now.
- harperlee 8y agoSorry perhaps I was not completely clear. (Part of) my point is that just having a selection done does not automatically turn your business into "curation". Early Netflix users used Netflix for the film availability, not for the film curation. In other words they valued the "positive existence"/access of the offering much more than the "negative existence" / curtailing of bad movies (users chose the films, so not so interested in curation when users also did it).
- dasil003 8y agoNope, you're drawing a nonsense analogy about a business you don't understand. Netflix needs content in order to acquire subscribers, the content all has to be licensed and paid for, producers and rights holders of good content are good negotiators and have many channels for distribution. Therefore as soon as Netflix was proven to be a real business the rights holders ratcheted up the price. This is a completely different scenario from ISPs, and the only escape from it is to produce your own content.
- forgotmysn 8y agoNetflix was more or less forced to start developing their own content because their suppliers (the studios) started realizing how much money Netflix was making, and they started developing their own streaming services. That's why their in-house content grows percentage wise each year. Each year the library of content they can license gets smaller.