Worth Reading: Netflix as Internet TV Net

Netflix is hitching its wagon to the future being video content delivered over the Internet. That basic belief underpins its bold move to de-emphasize its DVDs-by-mail business in favor of its streaming offering. CEO Reed Hastings wrote his quarterly letter to investors after a successful fourth quarter for the company, which now boasts 21.7 million streaming customers. Hastings sees Netflix’s competition less as Hulu Plus, but more as TV Everywhere.

Just as broadcast networks have substantially transformed themselves into cable channels over the last 20 years, both broadcast and cable networks will effectively also become Internet networks like Netflix. As a pure-play we have many advantages, however, just as cable did over broadcast. We are 100 percent on-demand and highly-personalized. Our brand is broad, rather than niche, so we can combine the benefits of multiple channels into one service. Additionally, our Internet culture enables us to create and drive social TV, recommendations TV, and other Internet innovations faster than our cable and broadcast network competitors.

Read Hasting’s full letter from the Netflix website.


More in Media

YouTube is under fire again, this time over child protection

Adalytics Research asks, ‘Are YouTube advertisers inadvertently harvesting data from millions of children?’

Illustration of a puzzle that spells out the word 'media.'

Media Briefing: Publishers pump up per-subscriber revenue amid ad revenue declines

Publishers’ Q2 earnings reveal digital advertising is still in a tight spot, but digital subscriptions are picking up steam.

Lessons for AI from the ad-tech era: ‘We’re living in a memory-less world’

Experts reflect how the failures of social media and online advertising can help the industry improve the next era of innovation.