Last time I told you Charter is offering FREE movie streaming to all its Internet subscribers. Today the news came out that CBS and NFL games will be on Verizon FiOS. Guess what? It will probably be FREE to its FiOS customers too. This company is on a death march. It will die just like Blockbuster. In the future, it will be fights between ISP titans to bundle FREE contents to their cable or FiOS Internet offerings to get customers, and this company will not even be in the picture at all. It is extremely dumb to waste so much money in such an expensive bubble stock for a company that has death writing on the wall already.
You only saw the first phase of the process. You need to think deeper. Netflix is benefiting from the cord-cutting for now, but then the next phase is FREE movie video streaming competitions from the ISPs. And Netflix will be out of business when the next phase of FREE streaming competition is in full force. Just like Blockbuster went out of business when DVD mailing was in full force. Look ahead and see the new trend. Netflix missed the sub growth last quarter probably marked the start of the new trend with FREE movie streaming from ISPs. Users always need ISPs, but not Netflix. Netflix is doomed.
More competitors came in streaming business. There is no reason that they let NFLX enjoys alone . CBS is coming in too. Why not? It's tough for NFLX now even it has been trying hard to improve it's business.