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IMO, Netflix management caving in here, while at the same time RAISING prices, shows just how strong their management feels their market position is. Hello mono
by 23david 12y ago
IMO, Netflix management caving in here, while at the same time RAISING prices, shows just how strong their management feels their market position is. Hello monopoly.
It may be non-intuitive, but this kind of 'tax' is actually to Netflix's benefit. From now on, it'll be much more expensive and difficult for any other competitors to enter the on-demand video market. Regulation/taxes often help solidify the status-quo. Look at the healthcare/finance/education industries...
- dbarlett 12y agoWarren Buffett calls it an "economic moat". http://www.investopedia.com/ask/answers/05/economicmoat.asp http://www.investopedia.com/ask/answers/05/economicmoat.asp
- cheald 12y agoIt is absolutely to Netflix's benefit. Their negotiated rate per megabyte delivered is almost certainly substantially lower than a competitor would be able to manage on market-rate transit. This move doesn't raise rates for competitors, but it certainly goes give Netflix an financial advantage that a non-established player wouldn't be able to gain.