Verizon to take on Netflix

The Gauntlet has been thrown: Verizon is building a Netflix competitor.

OK I'm skeptical – at this rate the competition is ramping up – but it sounds like they've got a focused plan (movies and kids' shows) and remember they've also got a presence on the new XBox.  So it's not unreasonable – and like Game Stores, it seems we're oddly at a place where people would rather launch a redundant service than miss out.

Takeaways:

  • Netflix is vulnerable, and I think their response will actually be internationalization.
  • OnLive is somewhere in all of this mess, with giant streaming system NO ONE IS TALKING ABOUT.
  • Verizon has a big "captive audience" they can leverage (and more with XBox).
  • Verizon is going to have to hire/employ people to do this – which may mean jobs.  If others jump in on this, more jobs.
  • People are still talking big, not small content.  I'm concerned smaller producers may get squeezed out.

(Oh and side note to Netflix CEO Hastings – do not compare yourself to Bank of America.  Man, I'm starting to feel my faith in Netflix is misplaced – but not enough to suggest you look elsewhere for work.)

Steven Savage

The Power Of Indespensible

Quick; I want you to imagine the makers of smart phone or console that refused to have Netflix on it. Wait, or maybe they decide they don't want any Facebook technology on it. Or maybe, just maybe they don't want anything to do with that whole "Twitter thing."

Can you see it? Nope, neither can I. And why can't I see it? Because Netflix, Facebook, Twitter, Google, and other companies have made themselves more or less indispensable to large customer bases. They're not going anywhere, they've learned from the mistakes of their predecessors (such as Facebook learned from MySpace and Netflix learn from,well, everybody), understand that they can make up the infrastructure of people's lives.

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