business news in context, analysis with attitude

Advertising Age reports that Netflix, which has grown from a company that shipped DVDs by mail to one that also offered an extensive streaming service, and then to one that created its own original content, now is in discussions with several cable companies that would allow the Netflix app to be available to consumers on their set-top boxes.

Previously, Netflix users had to rely on external systems - such as Blu-Ray players, Apple TV and Roku - to access Netflix content. The new arrangement - which already exists in Europe - would make access to Netflix "frictionless."


Variety reports that Netflix continues to add new original series to the roster of projects (think "House of Cards" and the revived "Arrested Development") that it is using to establish its differential advantages as a content source, not just a content delivery system. This one is described as a "psychological thriller" from the makers of "Damages," the Glenn Close cable series.
KC's View:
It strikes me that these are important developments in terms of the lessons they teach us, that companies cannot stand pat with the businesses that they have, but must constantly be pushing into new directions, testing new products and services, challenging conventional wisdom about what they should and should not be. If Netflix had simply accepted its role as a DVD delivery system, or as a content delivery system, it would run the risk of being made irrelevant by an expanding network of competitors. Instead, it is making the rules and creating the game, which is a lot better than playing the other guy's game, by the other guy's rules.