Netflix is a Wall Street darling. It has survived and thrived with more competitors than you can count, including cable, satellite and other streaming services. But is this streaming service going to survive the next round of mergers and competition?
For the most part, Netflix is just a brand. It is a middle-man that shares movies and TV for a fee. Most of Netflix’s content is not owned by Netflix. But that is changing as the “network” invests more in new content (and is receiving more and more acclaim).
Yet there are rumblings from some big players that seem crouched and ready to pounce: Amazon (which already has a service) and Apple (remember what Apple did to the music industry).
Streaming is growing. There is no question about that. The streaming industry is going to continue to merge, consolidate, expand, disrupt and experiment. Without new and valued content, no streamer will survive. Watch those that invest in new content and then control the franchises. They will be winners.
Just like a TV network of old, news shows attract eyeballs and help you sell other new shows. Streaming organizations will then begin to find ways to further monetize their investments so you will see more and more advertising fishing in the stream. Then carefully watch the advertisers. We always follow the data and the eyeballs.
This is the year of Netflix, tomorrow it may be Apple.