K. Lewis

Netflix's Roku is Doomed to Fail

Another very short sighted view of one move Netflix is making among many. Netflix NEEDS a hardware solution just to be in the game with Apple, Microsoft, Amazon, etc. They don't create content so their business is adding value to a delivery channel. The box does that for the years between now and the day flat panels connect to that mythical wi-fi network that can stream hd movies directly from the Disney vault to your home - on demand.

Also, the idea of them hitching their business to a Microsoft product would be monumentally stupid as MS would have no incentive to honor the relationship. What does Netflix really offer MS in that deal? Netflix doesn't own the content and MS could at some point in the future, license that content directly and cut Netflix out without impacting the MS customer base at all. Once that deal is done, they'd have a built in hook to the customer base Netflix would have handed them. Not smart.

Will 'Free' Make Money for Netflix?

This appears to be smart business in a big picture not many are considering. This business segment, similar to music, is in flux and the endpoint is still unknown with no clear winner or even dominant market leader like Apple/iTunes. If Netflix want's to play through, they need to be in every channel rather the betting on one or two models. When customers invest in a content delivery channel, it's hard to get them to switch. If they can afford it, they're smart to spread their bet and subsidize the losers rather than jumping in late like Blockbuster or Microsoft.