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Rovi Corporation Message Board

  • rchites rchites Mar 19, 2013 2:23 PM Flag


    They will nead to have guides and search...........Big data, big success

    Creating a successful movie or TV series is a notoriously difficult venture; even the most renowned actors and directors have experienced their fair share of failures. Since fixed costs are unusually high, content creation is a business in which there is a lot of money to be made or lost depending on viewership. The way Netflix has created House of Cards is nothing short of amazing, and it has some very important implications for the future of the business.

    Netflix has access to enormous amounts of information regarding the viewing habits and tastes of its more than 33 million members, and House of Cards proves that the company knows how to utilize that information in order to create successful content.
    Even Apple (NASDAQ: AAPL) could be considered a competitor in some sense. The Cupertino giant has a different a la carte model for video, which is more suitable for premium content. There is enough room for both companies to do well as long as their offerings don´t necessarily clash, but it´s still not clear to what degree Apple and Netflix can be considered partners or competitors. Apple has ambitious plans when it comes to TV, and it’s certainly stronger than Netflix from a financial point of view.

    And this considers only two big and powerful giants, it’s worth noting that smaller players like HULU and Coinstar are trying to make inroads into the business and steal a piece of the pie away from Netflix too. The main point is that the streaming business is getting crowded, and that´s why it´s so important for Netflix to differentiate itself from the competition if the company is going to maintain its leadership position in the industry.
    APPLE and HULA are customers and NetFlix should be paying.

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