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Originally Posted by jfman
Which in turn hits revenue for someone. Netflix didn’t blow $20bn for a sizeable proportion of its subscriber base to give them $30 a year.
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Netflix is separate story. They had to build their content library up from nothing and to quote Reed Hastings, "they have to become HBO faster than HBO can become us." They've done it.
I would expect that the bulk of all the streamer's profits will be through DTC services, rather than going through a third party.
Quote:
Originally Posted by jfman
So we lose the competition that was supposed to drive prices down and just end up with a small number of large players anyway. So, and this is the question no-one can answer, how are Comcast/Liberty not well placed to work in this environment given they are well placed to offer both linear and VOD and have the subscriber base already?
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Just like the supermarkets, I don't expect anymore than half a dozen large players in this field and the compettion will be fierce. Whether they reach a equilibrium and prices stabilise, remains to be seen.
I never said that Comcast wouldn't be one of them, clearly they are, but more consolidation is coming and I'm certainly not clear what name plate will be on the front doors of the HQs of the Big 5 (or however many cos it will be) in the next five years, but probably Apple, Google, Amazon, Microsoft and Netflix.