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Netflix, Inc. Message Board

  • yuwei56 yuwei56 Jun 17, 2010 5:03 PM Flag

    NFLX is at the mercy of content providers.

    Just as Mark Cuban said, the content providers are caught by surprise that NFLX can make some money. If you're content provider, what would you do ? Continue to let NFLX rip all the profit ? Of course not. You're going to raise the licensing fee. Many other me-too companies will come to you for licensing, pushing the fee. Not only so, the cost of adding new subscribers will be higher and higher and the subscription fee will be lower and lower because there are so many other choices.
    So NFLX's profit will be squeezed like hell. This happens to wireless cell phone companies before.

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