Monday, October 13, 2014

What’s Next for Netflix? [The New Yorker]

Final paragraph from a Netflix snapshot

"Netflix has real advantages—the sophistication of its streaming technology, the trove of data it’s amassed on viewing habits—but competition will make it hard to boost profits. HBO is making noises about a stand-alone streaming service, and Amazon’s service comes free with Prime, so it’s unlikely that Netflix will risk raising prices anytime soon. Content costs, meanwhile, will keep going up. The situation is an unusually stark example of competitive capitalism in action: someone invents a new market and thrives, but the success shows competitors just how lucrative the market can be. This may be hard on companies, but it’s great for consumers, since they’re getting more new shows and movies without having to spend another dime. We can sit on our couches, while Netflix runs as fast as it can just to keep its place."
What’s Next for Netflix?

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