Netflix (NFLX) and the Streaming Wars Message Board

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Technology Stocks : Netflix (NFLX) and the Streaming Wars

NFLX 1,113

-3.6%

Nov 14 9:30 AM EST

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From: Krigannie	12/31/2015 7:01:57 AM
	Read Replies (1) of 2280

NFLX's value long term will be the based solely on their original content. The margin on licensed content will be squeezed to nothing. I keep hearing they have first mover advantage which means nothing for a commodity. Does Standard Oil still control the oil market? Players in the commodity business are price takers and compete on cost... something Netflix hasn't proven very good at. NFLX needs global content that it can sell across markets, and sports are simply too local. Different cultures like different sports and people want to see their local teams, not every team in the sport. And as well all know, sports licensing is very expensive. NFLX could try a deeply discounted ad-based tier, but the nuisance factor of ads would cause most people to keep paying the higher rate to avoid ads. Even a lower-price ad-free tier probably wouldn't work if NFLX had to lower the price so far that the ad revenue couldn't make it up. Ads and streaming may not be compatible because of the high value streaming customers place on a good user experience, which means no ads. Also, having been a NFLX subscriber for many years, their content is not that great as it used to be before. their different video categories keep showing the same movies/documentaries in them. It feels like the increasing cost of streaming is visible in poor quality titles across the board. I don't get it how this company can be so overvalued when the product quality is not that great anymore. I am sure a lot of people would disagree with me on that matter though.

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