This is the “I told you streaming works great ” example everyone uses. It’s a great example of what streaming on TV could be…if every content provider and TV Provider ignored the competitive threat of Netflix. Why would the content owners continue to license the content to Netflix for peanuts and put at risk BILLIONS of dollars? Right now Netflix has been BRILLIANT at monetizing previously unmonetizable content. But as the balance of revenues change, so could their access. They already had to give up a 28-day window on movies. You don’t think that is their last concession, do you ?The other thing to note is the percentage of Netflix subscribers that already subscribe to a TV provider. Netflix has to be concerned that it will be easier for those people to give up Netflix if their TV provider expands their VOD offerings and allows for queuing of streams to a TV channel than it will to give up the TV provider.
Cuban also believes that because the alternatives to cable or satellite are too complicated for most consumers, that The Future of TV is... TV.
Netflix has been carefully transitioning to streaming, but will the studios see them as a threat or partner? What do you think?