They're planning to launch it first in the UK and Europe where there's less competition and they can test it, before rolling it out internationally. YouTube has been in talks with Hollywood executives over the plan for months, and plans to spend $100 million on content
Read more: http://www.businessinsider.com/youtube-streaming-service-2011-2?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider+%28Business+Insider%29#ixzz1EyYZAGza
Our data suggests shares are significantly overpriced, but the model does assign a B+ grade to earnings quality. Estimated fair-value is $150.42.
The analysis could make a reasonable case to be short NFLX, but this market seems keen to keep the tire biters at bay...cash-flow be damned! Yet, we wouldn’t be jumping in long either. Why? The contrasts between GAAP and non-GAAP (at this point), look to be wider than the gap between granny’s teeth.
People who use YouTube are clearly willing to stay on the site for long periods. YouTube’s business plan puts it on course to battle Netflix. YouTube is large enough to do what Hulu and Blockbuster have not been able to do. Netflix may finally have a worthy competitor.
Apple is building a BILLION dollar data center in North Carolina that is in pre-operations. For what? Think about it - a gigantic iTunes streaming and Mobile Me cloud offering. No way they make a run at NFLX.
With the deal, the Internet giant is seeking personnel to help it acquire more professional content for its video site YouTube, several people familiar with the matter said. But it also would be acquiring an array of original Web content, taking on the role of a digital studio in addition to an aggregator of other people's content.
Read more: http://online.wsj.com/article/SB10001424052748704132204576136312464182304.html#ixzz1DaXu1e1b
Speaking of streaming, there's a couple of other references worth noting: "Sedona" and "Flagstaff" are listed as features in the OS. We have no idea what Flagstaff is, but Sedona is Apple's video rental mechanism. Considering the North Carolina datacenter for a moment, and what we're seeing in the 4.3 firmware, it isn't too much of a stretch to see video rentals becoming video streaming through the Apple TV.
Serious question for longs and shorts. What does the Netflix of 2013-2015 look like? Obviously DVDs/Blueray are dying and streaming is the way of the future, so their mail business will fade away. How will "new" releases be handled? It's also easy to imagine a day in the not too distant future when I can order a movie on opening weekend and have it streamed to my home theater for a big fee (say $49).
It seems obvious to me that Apple, Amazon and cable/sat providers are in a better position to handle a pay-per-view type model ($3 for a first rate new release), as opposed to the all you can eat model of NFLX. Does NFLX eventually move to this type of model? Do they carve out a niche as an older content archive? Thoughts?
One thing to remember w/ regards to Amazon, there is absolutely positively no way Netflix can compete on price. Netflix runs their entire service on... Amazon AWS. They simply can't recapture those margins. Amazon can almost give this stuff away (sans content acquisition), given the gross underestimates on the size of their infrastructure. The only company competing w/ Amazon at the moment in terms of compute/scale/datacenter is Google.
If anyone doubts this, take a look at what happened w/ Diapers.com. They balked at Amazon's initial offer and Amazon cut their prices so deeply they gave up in a matter of weeks. I can assure you Amazon will not buy Netflix at this market cap.
Amazon is a ruthlessly efficient, fast moving company. A far more worthy opponent than Apple to battle Netflix in the long run. A key thing to remember, Amazon has the bandwidth leverage (thanks to AWS), the technical expertise and the logistics experience to battle Netflix.
Here's a link.
Longs will all say this is not threat and it probably isn't in the short term. But Apple and Amazon will, without question, chip away at the Netflix base.
I can tell you (from real experience) Amazon is a ruthlessly efficient company. They have the bandwidth pricing leverage, technical expertise and logistics experience to battle Netflix on all fronts. They are smart, move fast and build from within. They will be, by far, the most dangerous competitor Netflix has faced to date.
He can say that all he wants and I'm glad he feels that way. However, if a big player like IBM/Dell/Oracle steps up to the plate with a good offer it's their responsibility to shareholders to take the deal.
Again I'm stunned about how misinformed people to be about this space. Equinix is not a major competitor. People goto Equinix to lease what is called colo space (space, power, cooling, bandwidth), then they put their own servers in and manage them. People come to Rackspace so they don't have to worry about anything, they simply pay per server and get 100%, call 24x7 support. I assure you Rackspace does not care one bit what happens to Equinix, the only thing they really have in common is they own/manage datacenters. If anything, Equinix might have lost a large company (not uncommon) or people are moving to Rackspace because it is significantly cheaper and more flexible (no contracts, pay as you grow).
This is really a dumb post. VMware is not a direct RAX competitor and Akami is a Content Delivery Network (a very tough business) which has nothing to do with the cloud. Every business that currently has servers in house will ultimately move to Rackspace or Amazon. Do the math, it's a gigantic opportunity.
When I read message boards, stock articles and tweets, it is clear to me that very few people understand what Rackspace does. Salesforce, Savvis, Equinix - these are not Rackspace competitors. Their real competitor is Amazon. Put simply, they are the #2 cloud provider (Amazon is #1) and closing the gap.
This is a multi-billion dollar opportunity and I truly believe people do not understand the magnitude of this market. In 5 years, the majority of applications in existence will run on either Amazon or Rackspace's platform. Microsoft is in this game, but they are dying a slow death. Google too, but to them it's an academic exercise and will never be their core product.
Rackspace is a huge hosting company that offers high-end support. They host dedicated servers for businesses that run web applications - that's what got them to this point. What gets them to a 10B plus market cap is their cloud offering. Check out Openstack, they've open sourced their technology in conjunction with NASA. This move wins developer mindshare and gain marketshare from Amazon. Then Rackspace leverages their experience in support and business sales to dominate. Hope this helps, LONG RAX.