Tuesday, April 26, 2011

The Tablet Concept Developed By the Newspaper Industry

In 1994, Knight Ridder had already imagined a Tablet computer. I guess the fear of losing their print business may have stopped them from making this leap. Still a fun video to watch, especially that is was created over 17 years ago.

Can Netflix Keep Growing?

Netflix has successfully transitioned itself from DVD rental to streaming media giant. And consumers have flocked to join the service. "At the end of the first quarter, Netflix had 22.8 million subscribers in the United States, giving it as big a footprint as the biggest American cable operator, Comcast, which reported 22.8 million subscribers at the end of last year." At the same time, Netflix has recognized that content is king and is pushing into original content. So will this bubble burst?

Netflix faces a couple of challenges as well as opportunities. The challenges include a platform with low barriers to entry. Cable companies, Apple, Amazon, Dish/Blockbuster and others make it a very crowded space. Competition also pushes up the price of content. It follows a very simple supply and demand economic pricing model. And lastly, the product is only as good as the broadband path that enables it.

But Netflix also has opportunities. Its large customer base is ripe for an advertising model that would add another revenue stream to their bottom line. And as a leader, they continue to remain innovative and forward-thinking. As they learned from DVDs, the business is ever evolving. And lastly, Netflix might also want to consider new partnerships to compete. As Comcast is owning content networks, Netflix might need to do the same. Vertical models are forming and Netflix may need its own to remain ahead.