Pricing and Qwikster-related stumbles notwithstanding, Netflix remains a powerful force in the home video marketplace, especially when it comes to streaming.
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CEO Reed Hastings recently called streaming a “rocket ship” and said that Netflix will easily surpass one billion hours of streaming content in the final quarter of 2011.
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Hastings also has said that the rival streaming service that keeps him up at night belongs to HBO, and that only the premium cable provider and Netflix are willing to drop multiple billions of dollars annually on their content. Said Hastings:
“The competitor we fear the most is HBO Go . . . They are becoming more Netflix-like and we are becoming more HBO-like.”
Is Netflix flattering itself to think that its content is approaching HBO-like levels of quality, or is that exactly what is happening? Is the company right to fear HBO Go above all other competitors?
(via GigaOM)
It’s inevitable that content creators will also become content streamers via the IP stack. How much longer can the middle-man survive?
The real problem is going to raise it’s ugly head when more people start getting charged additional for having the audacity to actually use the bandwidth they have been paying for.