Gustavo Ballvé on May 10th, 2011
Corporate Governance, Corporate Strategy, Food for thought, Industries, Media, Tech

Netflix is pushing into Latin America, say both the Financial Times and Bloomberg, and the strategy is interesting: it’s trying to acquire content such as the popular soap operas to stream them into customers’ homes. It’s interesting to imagine the trade-off playing in the Media companies’ strategy sessions: on the one hand, studios are scared by the not-so-slow death of DVD sales and are perhaps starting to see Netflix as an inevitable ally. On the other hand, it’s also easy to imagine their reluctance to potentially cannibalize the Pay TV channel (pun not intended). We’re happy not to be in their shoes, but even happier that we don’t have to act when we don’t have conviction… More links on Netflix inside, including an interesting piece saying that part of Netflix’s success is due to its aggressive pay scheme.

The New York Times had this piece on May 8th highlighting Netflix’s monthly stock option award schemes. Another bullish part in the same article is worth highlighting: “A new adversary sounds intimidated. Charlie Ergen, whose Dish Network bought Blockbuster out of bankruptcy, says he does not plan to challenge Netflix on streaming because of its ‘insurmountable lead’.”

We’ve posted before on Netflix:

Recommendation software in Brazil – Dec. 10th, 2010

Two tidbits on Cisco – November 4th, 2010 – An article titled “Will Netflix destroy the Internet” has us thinking about the implications for Cisco, but it’s a nice reminder of the data-intensive aspect of Netflix.

Two small updates – Aug. 13th, 2010 – The second update is about “creative destruction” at Netflix.

Netflix doing the right things at the right time – Oct. 5th, 2009 – However, as we’d post on March 15th 2010, not always…

Netflix’s smart crowdsourcing initiative – Sept. 22nd, 2009 – The Netflix challenge was a pioneer crowdsourcing initiative that yielded success and quite a lot of “brand/business clout”.

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