Quickthink

In my dreams last night Warren Buffet gave me a phone call. He wanted to know why I was fixated on stock market trends. I protested, but he was adamant. I hung up with renewed resolve to look for companies that look ready to “break out”. Ok Warren, here goes!

One of these might be Netflix. Its stock has not tanked (which could put off some) and I can see why. Netflix has come to dominate the US movie rental business, and it is using this to build a competitive advantage to deliver films via internet (streaming). Here are some links that discuss its corporate vision.

Om Malik gives a nice profile of how broadband TV markets are developing in general — and Netflix’s position in the market. One interesting thought from the article — tiered pricing for broadband services by cable companies is potentially an anti-competitive practice (designed to force consumers to use cable based services instead of straming). Litigation anyone?

NYT offers a nice profile on BluRay’s first year as the dominant format for high definition DVD. Again Netflix figures in, arguing that BluRay will be a key platform for longer than people think. Interesting.

So — Netflix may be an interesting company to watch over the mid term.

 FOLLOW - Hold on to your hats and Netflix shares — there is talk that Amazon should acquire Netflix. It’s just talk, but a deal like that could be very interesting for Netflix shareholders.

Tags: Netflix

This entry was posted on Monday, January 5th, 2009 at 11:15 am and is filed under Business models, Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.