Why Netflix is in trouble

Everybody knows Netflix and Stan. Fewer know about Foxtel Play, BigPond Movies and TEN Play. In the US, Netflix still rules, with a 40% market share, and it’s the market leader here too. But competitors are coming. Monthly app downloads of HBO Now, Amazon Video, Hulu and Showtime in the US together surpassed those of Netflix earlier this year, and have continued to grow. Streaming video over the internet is no longer a technological outlier, which it was when Netflix  started just 20 years ago. The great deals that Netflix did on year-old content translated into a big business, before the seven content studios that control Hollywood had really worked it out. But work it out they have and they will be streaming soon to a tv set near you (including in Australia) in the very near future. Netflix’s business problems are not structural or even disruptive; it is facing simple competitive pressures as content makers learn how to price their content streams on-line. And now AT&T is entering to buy Time Warner, complexity will increase. Read more here (VIEW LINK)