April 25, according to foreign media reports, Apple recently launched a live program and the increasing expansion of the Amazon and Netflix video services are the main business of “coincide”, if the two companies related business development goes well, there may be the overlord Netflix has been pulled down from the throne, after Netflix in 2014 no longer seemed unbeatable as before it.
Truly, Netflix is still very strong, their stock price higher than the profit forecast full 76-fold, reaching $ 332 per share. This momentum allows Netflix’s stock has become the best performing stocks in 2013 S & P500 vote. If Netflix does not appear much in the next planning errors, the company expects its own subscribers can grow from last year’s 33.4 million to 90 million by the end of 2014’s. According to reports, Netflix network data traffic accounted for nearly 32% of the nation’s total fixed cable broadcasting network traffic as much as ten times the data is full of Apple iTunes traffic, Amazon is twenty times the video.
But Netflix is not the wheel a little storms have not encountered, in March an apple with live video coverage Comcast service cooperation negotiations so that Netflix’s stock fell 7 percent, and after continued low until mid-April each has shrunk by $ 45. Visible in the face of Apple, Amazon impact of industry giants such things, investors’ confidence appeared shaken.
It is also because Comcast reports, Apple’s stock rose 0.7 percent to $ 536, and finally in March reached $ 540 in mid-April, then dropped to $ 521, which did not include the market expectations for Apple’s second-quarter earnings reaction. Meanwhile, Amazon’s stock has dropped from 22 percent in January, came in early April, their live video service than tripling last year’s news, the stock rebounded by 2.9% to $ 316.
1 Software is a double-edged sword
Netflix is actually very strange situation, their service is completely built on software. This of course is their strength, but also their weaknesses. Netflix brand is very appealing because of its wide coverage over the years, the company’s live coverage of the various devices, people always can easily log onto their Netflix account to watch videos. So Samsung TV to the Amazon Fire TV offers Netflix application is a reason to do so can bring a lot of ready-made user and attention, these solid foundation is one of the strengths of Netflix.
On the other hand, where the software is defective, Netflix does not own any trademark affixed with hardware devices. Apple, Amazon and other companies concerned about the live video service for Netflix all have one advantage: they can quickly use the Apple TV lets users interactively, promotion, etc., iPhone , Kindle, Fire TV such devices, these devices to access video content, and then put Netflix out of the public eye. Furthermore, and if these companies to set the price of subscription of $ 8 less per month than Netflix, Netflix faces pressure will be quite big.
2.Netflix and content they provide
Netflix will not stand still. This home video company invested in content than at any time in the past, from the “house of cards”, “Women’s Prison”, “Hemlock Grove” you can see that. Pictures and Amazon also promote their original content to expand the brand influence, this is a long-term strategy. Netflix users certainly can not see the content, depending on the case, only subscribe to Amazon. It is worth noting that Amazon has overwhelm the HBO Go streaming media and other U.S. provider.
In addition, “Wall Street Journal” has reported that Netflix is preparing to offer live TV service. This form of services providers will suffer revenue sources generate advertising revenue. Multiple forms of service Netflix will bring a number of profitable channels, but its rival Apple, Amazon already have these services. So if Apple and Amazon decided to continue on the video service force, then this field have looked there.