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Netflix has one thing that most streaming video sites don't, and that's massive market penetration. In my living room, I have 5 devices capable of Netflix streaming, as well as every mobile device I own.

Amazon is probably second with their offering, and even then I don't own any devices that can stream Prime Instant Video (my TiVo can download from Amazon, but isn't compatible with Prime's streaming). Any Netflix competitor has a huge hurdle to overcome to be as successful as they've been.


They first obtained that advantage through their infrastructure investment in DVDs though, not through steaming. Any Netflix competitor now has a much smaller hurdle to overcome to be as successful as they've been. From the customer's viewpoint they went from having a relationship with a single company that had two offerings to a relationship with a company with a single offering that is somewhat lacking.

If I were the new CEO of Quixster or Kwikstr or whatever the hell it is, I would immediately start looking around at who I can partner with to get streaming content. Actually, isn't Quixtar the name of a MLM scheme?

This move makes no sense. Seems like Wall St. pandering garbage.

> Actually, isn't Quixtar the name of a MLM scheme?

Yes, Quixtar is Amway.

"Netflix has one thing that most streaming video sites don't, and that's massive market penetration. In my living room, I have 5 devices capable of Netflix streaming, as well as every mobile device I own."

And those devices are electronics, which have the shelf life of dead fish. You have to stay relevant to make it into the next generation of products. Nobody is pre-bundling a service that a) has a small subscriber base or b) doesn't have good content.

Moreover, many devices (like my own television) let you trivially download apps from any provider. I got amazon streaming on my television on the day it was announced. Being installed on a device isn't a competitive advantage when anyone can do it.

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