Verizon Entering Netflix Business, Maybe Acquiring Netflix | Jeff Kagan Tech Analyst

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Jeff Kagan

Tech Analyst

     

So Verizon is going to get into the Netflix business. This is great news for Verizon and not so great news for Netflix.

Unless Verizon acquires Netflix to make it happen. Then it could be good news for Netflix as well.

This reminds me of what happened in the late 1990′s and early 2000′s. Internet Service Providers or ISP’s were young and rapidly growing in the 1990′s. Companies like Prodigy, AOL and EarthLink were the early pioneers providing internet connections to homes and businesses. At first through dial up then through high speed connections like DSL.

As local phone companies started rolling out DSL and cable companies started rolling out their high speed connectivity, they also started to win customers with discounted ISP service.

Over the next several quarters and years these larger and new competitors to this space basically turned this market upside down. They now won.

The smaller ISP’s lost.

The same thing may happen here with Netflix. Netflix was the small David compared to the Goliaths who are about to enter their space. In this case however the many Goliaths will win and poor David will either fold or be downsized.

This will be interesting to watch history repeat itself again.

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Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

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Jeff KAGAN| Tech Analyst w Atlanta based jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

~ Also Columnist, Author, Consultant, Speaker

~ Column http://www.ectnews.com/perl/section/jeff_kagan/

Phone 770-579-5810 Email jeff@jeffKAGAN.com Web www.jeffKAGAN.com

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