A few weeks ago, I wrote a post titled ‘Netflix: A Strong Buy.’ The post referred to the vast business opportunity for Netflix and its ability to execute and deliver.
- It was the first company to start delivering DVDs via mail. It succeeded. Others, not so much.
- It was the first company to start streaming content. It succeeded. Others are still trying.
With the recent release of its mobile application, the immediate opportunity is tremendous. However, in the future, that increases significantly.
Netflix CEO, Reed Hastings recently published the following slides about their business. It’s a good read:
Netflix Business Opportunity
View more presentations from reed2002.
A few points of interest:
- Netflix focuses only on one type of content – TV & movie. No news, no instructional, no sports, etc.
- Unlike other hybrid solutions, Netflix has only one revenue model — subscription.
- Over time, Netflix’s biggest cost is going to be licensing, not postage.
