Bryan Kautzman

Is Netflix the Next Apple?

You make an outstanding point, one that I completely overlooked. The television stalwarts will have their advantage because they also sell broadband, but Apple will have an advantage because most of their subscribers are already broadband users. Plus, Apple will have an additional advantage in that they have been one of the most innovative companies of the last ten years. The possibility of them getting into the foray of using a business model like the one that Netflix offers completely escaped me at the time of the writing of this article.

However, the biggest advantage that Netflix has, along with it's track record in innovation, is its current market share. And you're right, the only thing holding Netflix back is people's access to broadband internet connections. However, this may be yet another Obama infrastructure play, albeit indirectly. I envision a future where the internet surpasses television as the preferred mode of entertainment for Americans, and the ability to watch streaming episodes of one's favorite television shows is only the beginning.

One must also not forget about the potential of google in this market through a venue such as youtube.

Sure, the waters are murky at the moment, but with Netflix's current market share combined with their innovative edge, I do believe that their stock in this bear market has nothing but positive potential. In the long term, they could very well end up being an acquisition target.

Thank you for your response.