Netflix enters into shark infested waters
Netflix has the best streaming video service hands down. That includes (IMHO) all of the “OnDemand” services currently being offered by the big cable and satellite companies. Comcast, AT&T, Time Warner, Verizon (and others) have a great service but, I believe that all of them lack a few valuable things that video on demand must have:
1) Recommendation engine: without a truly interactive experience the concept of choice comes right out of video on demand
2) Series based show management: watching an episode from a TV series and being asked at the end if you would like to watch the next episode is genius. It’s like the “repeat if desired” on all shampoo packaging. It drives more use.
3) Watch anywhere concept: I know this is difficult to grasp but watching quality video over the Internet is very possible. Being forced to watch videos/movies/tv through a set top box is limiting. (I believe Verizon is the first company advertising the ability to start the movie on your laptop, continue on your tablet and finish on your TV – sorry Direct TV’s “Any TV in your house just doesn’t cut it today)
Does TV belong on your television?
So you have to ask yourself: “should quality video content viewing be limited to your television?”. Hopefully you realize that the answer to this is no.
Why then is Netflix messing with their foothold in the market for quality web streaming of video content? I think it’s exactly what they are doing when it comes to the new deal to be the sole distributor for a new Kevin Spacey television show (coming in late 2012). This announcement came as a big surprise to me.
Content providers like ESPN, MLB and NBA have begun to offer web based streaming of their content. Currently I subscribe to the lower end NBA League Pass Broadband (the one where you pick 7 teams) and I spend more on that in the 6 months of the regular season then I do for an entire year of Netflix. The quality of the video on the NBA LP is watchable. Period.
Be good at what you do
Netflix gets it. The have it down. Why not lease their technology, servers, connection and services? Why not be the YouTube of streaming movies (that sounds funny but it’s actually true – YouTube is very far away from being the leader in full feature film and tv streaming – and it shouldn’t be – but that’s another story). Why not help ESPN 3 become what it can truly become instead of just some experiment in live sports streaming (kudos to ESPN though as I rate their offering as the current leader in this space).
To someone that currently doesn’t use a set top box to access content at home, it is surprising to me that Netflix would enter into a space that it has little experience in when the few things that they are good at are so far beyond the competitive market. Leave the content production to the people that do that best and figure out a way to lease your services to Hulu or to bring every network not affiliated with Hulu into the future of streaming media.
Only time will tell but my impression is that Netflix will not succeed in becoming a big time content producer in the near to distant future and the divide in direction may hurt them as much as selling videos in a store hurt blockbuster.
Every morning this week I open my hotel room door and step over the USA Today Newspaper that has been so kindly placed on the floor. Sure I glance at the headline. But each evening when I return I find that same paper I stepped over in a pile on the table right inside my room.

I just signed up for NBA broadband. I know expensive. But without cable or satellite I won’t be able to see any NBA games until they start showing up on Sundays. Which doesn’t start until October 27th. I can choose 7 teams that I want to watch. However, when I go to their account management section there is no indication of that on their site.



