The problem with netflix is it doesn’t have access to proprietary content or technology. There are lot of tech companies out there selling netflix style turn key solution that run on tv devices such as matrixstream or microsoft for less than few million dollars. So every telco, cable, video start-up will be competiting with netflix soon.

If i was netflix, i will go around acquiring key streaming technology such as vudu to ensure long term survival.

Netflix should enjoy the party before it ends soon.

When Watch Now becomes the primary means of getting to customers, Netflix will be far more vulnerable than they are now. Watch Now is relatively easy to copy. With $30M or $40M, a competent management team could create a service that’s just as good. And the Hollywood studios would probably like to see that. They might even help. That’s a pretty scary situation for stockholders of a company with a $5.34B market cap.

In a fully digital world, Netflix will be also be completely dependent on studios for content licenses and its distribution partners (Tivo, Sony, Apple, etc.) will have far more control over Netflix’s customers than the USPS has now. I don’t know, but I’d be willing to bet that Netflix had to bend over pretty far to get its App on the iPad. That’s not a great position, literally or figuratively.