Will NETFLIX Recover? | Jeff Kagan Tech Analyst

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Jeff KAGAN

Tech Analyst

     

Netflix had a rough summer. They tried to make some changes and raise some prices and their customers revolted. They suffered with months of losses.

Now Netflix is recovering, somewhat. They are winning customers once again. They are still not back to where they were, but they are on the way.

THE QUESTION: Will Netflix recover and get back to business as usual, or will they struggle going forward?

Netflix is no longer going it alone. Suddenly they face competition from large companies like Verizon. We don’t yet know whether Verizon will be successful, but this is a big threat.

This same kind of thing happened a decade ago. In the 1990′s, we used to do business with a variety of small companies to get access to the Internet. Companies like Prodigy, CompuServe, AOL and EarthLink. Today only AOL and EarthLink are still here and they are only a fraction of the size they were and growth is not robust.

Companies like AT&T, Verizon, Comcast and Time Warner started providing high speed Internet connections and customers switched away from the smaller companies.

The wave that Netflix is riding may have crested. The next question is can Netflix create the next wave or will they continue to give way to larger competitors.

We don’t know yet, but the writing is on the wall.

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These comments may be quoted in news stories.

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

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

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