
Netflix sees the future, and it's digital - gibsonf1
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/24/BUR214QV6B.DTL
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Jasber
Two points I pulled out of this article about Netflix:

 __ _With the hiring last year of Anthony Wood, founder of ReplayTV and Roku,
Hastings reinforced his intent to deliver video straight into the living room.
Originally, Netflix had plans to build its own boxes a la TiVo, Vudu or Apple
TV, but Wood convinced the company that it could get wider distribution if it
embedded its software in set-top boxes and gaming consoles._ __

This was very smart. By not trying to get the whole pie, they're getting a
smaller piece of a much bigger pie.

 __ _"It's a good strategic move," said Andy Hargreaves, an analyst with
Pacific Crest Securities. "Netflix sees the world will go digital, no matter
what they do. They realize there is more to be lost by waiting than doing it
early."_ __

The last line is crucial. Too bad other businesses don't understand this.

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gyeh
It's not that they do not understand this. It's often not in their short-term
interest to go digital. Imagine being in Sony's position trying to sell their
blu-ray products. Why promote an alternative form of content distribution?

~~~
Jasber
I agree with you, but their short-term interests are putting them out of
business. Businesses that take a long-term approach are the ones that are
winning (Amazon and Toyota spring to mind).

Point being I don't think anyone can compete with Netflix right now. They've
done everything right. Blockbuster deserves to loose because their short-term
interests were to delay and drag their feet.

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mdasen
This is what one has to do to stay relevant. As the times change, you adapt
and keep creating value.

