
NetFlix had a great idea. Delivering DVD’s and streaming movies and television content to customers over the Internet.
The idea was so strong it transformed the entire industry. Look at the death of Hollywood Video’s and the looming death of Blockbuster as an example.
NetFlix uses roughly one-third of all Internet traffic. That is an incredible success story.
However now that NetFlix is a success the big guys are aiming at the same space.
NetFlix has a bull’s-eye on it’s back and new competitors like Comcast and Verizon are ready to pull the trigger.
In fact I would not be surprised to see several other competitors step into this space.
This is a huge threat to NetFlix.
This is just like the high speed internet access threat from ten years ago. It started with America Online, Prodigy, CompuServe and EarthLink. When it was obvious it would be a successful space, the local telephone and cable television companies jumped in.
Today most customers get Internet access from either the cable television company or the local phone company.
This is how this business operates.
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These comments may be quoted in news stories. They are being sent by email list and on the web.
Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com
If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com
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Jeff KAGAN| Tech Analyst www.jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Also Columnist, Author, Consultant, Speaker
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Jeff KaganTitle: Tech Analyst ~ Columnist ~ Industry Analyst ~ Wireless Analyst ~ Telecom Industry Analyst
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Email: jeff@jeffkagan.com
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