Netflix (NFLX) and the Streaming Wars Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Netflix (NFLX) and the Streaming Wars

NFLX 107.82

+1.6%

11:09 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: 2MAR$	4/8/2011 5:29:15 AM
	1 Recommendation Read Replies (1) of 2280

The Fool defends fool.com Leanr to spot the enemy Let's go over some of the recent challengers to Netflix's throne and assess their DEFCON ratings. •Time Warner (NYSE: TWX ) streaming The Dark Knight on Facebook? Not a threat. These are piecemeal rentals streamed on a PC. This is so 2007. •Coinstar's (Nasdaq: CSTR ) Redbox promising a digital strategy since last year? It's vaporware, though Redbox's buck rentals paired with a low-priced streaming smorgasbord could make a difference if it's priced aggressively. •Amazon.com (Nasdaq: AMZN ) offering Prime subsidized shipping members unlimited streams at no additional cost? This is a serious contender. Prime already has millions of shoppers paying $79 a year for free two-day shipping. The rub here is Amazon's likely inability to match Netflix's digital catalog. •Time Warner Cable's (NYSE: TWC ) push to offer many of its broadcasting channels as live iPad streams? It will be a compelling retention tool for Time Warner Cable, but it's hard to compare Netflix's $8 a month streaming to the typical Time Warner video subscriber paying nearly $75 a month. Dishbuster doesn't make anyone tremble with fear Where would you rank the Dishbuster threat? If DISH uses Blockbuster's digital prowess to create a satellite television service with a strong streaming component, this would primarily be a threat to rival cable and satellite TV providers. It would essentially be raising the bar on what Time Warner and Comcast's (Nasdaq: CMCSA ) Xfinity are now doing. If DISH decides to keep the two offerings separated, even as it turns on the spigot of cross-promotional opportunities, it wouldn't make Blockbuster any more competitive relative to Netflix. Blockbuster is a ticking time bomb. There's a reason why DISH was able to walk away with a ubiquitous entertainment brand for just pocket change over what liquidators were willing to pay to gut it whole. DISH can't afford to get cute here. Every passing quarter makes optical discs less attractive as a bricks-and-mortar theme. It can whack prices to compete with Redbox, but that will only speed up the fiscal bleeding. The same can be said for revisiting the low-priced Netflix-esque offering that ultimately led to its bankruptcy filing. If DISH's plan is simply to try to get the shrinking number of Blockbuster in-store renters to install DISH satellite systems before handing over the chain's inventory to liquidators, it better hurry. The ticks will count down even faster if customers sense the bait-and-switch demise. Regardless of the scenario -- and DISH is entitled to keep its playbook to itself -- there is no setting where Dishbuster threatens Netflix. Everyone mistaking this soup kitchen for Netflix's smorgasbord needs to get their palates checked. What do you think DISH will do with Blockbuster? Share your thoughts in the comment box below.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next