Netflix would be the 3rd largest cable operator if it were a cable system as well as a formidable competitor to pay tv networks HBO and Showtime if it were a pay tv network.
Netflix is the best kept secret in the entertainment industry. While most are familiar with the company they don’t realize the true significant value of the company.
With 10.3 million subscribers (up 25% from 2008 as of 3/09) Netflix has a very valuable audience of movie lovers. Even better Netflix has something the pay tv networks and cable operators don’t have…a database of what their customers like. Netflix has created software that analyzes their customer’s tastes so it can recommend movies they would be interested in.
Reed Hastings should be Hollywood’s favorite guy but he is still fighting them for rights to stream their films online. Hello Warner Bros., Sony Pictures, Walt Disney and others…the first one in gets the goods.
While, Will Richmond of Videonuze predicts that Microsoft will buy Netflix, I predict Comcast as the acquirer. Brian Roberts has built an impressive Comcast Interactive Media who has been very active and unabashed acquirers.
Hollywood, wake up this is your chance to finally own a pay tv channel and be able to target your films at the hungriest customers and to sell direct to the consumer…oh those margins! Remember Premier? Now you can start the movie industry Hulu…if the networks can do it why not the studios?
10 million movie hungry subscribers paying $1.36 billion dollars and the most extensive movie usage information in the world. What is everyone waiting for?