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Netflix gets ready to play defence

January 3, 2008

Netflix may have invented the magic envelope, a great recommendation engine and seen off the billion dollar challenge from Blockbuster, but the battle to bring movies into the living room has only just started.

The contenders are lining up with everyone from the predicablecable players like Comcast, to the newbies like Apple all wanting a piece of the pie.

The video business is moving from physical pieces to digital bits, just as Nick Negreponte predicted all those years ago and Neflix, a king of the DVD space, needs to defend its turf and make plans.

The latest defensive play is a venture with LG ,who this Fall, will release a set-top box that allows internet access and importantly access to a download service from Netflix.

According to its press release.

“Internet to the TV is a huge opportunity,” said Netflix Founder,
Chairman and CEO Reed Hastings. “Netflix explored also offering its own
Netflix-branded set-top boxes but we concluded that familiar consumer
electronics devices from industry leaders like LG Electronics are a
better consumer solution for getting the Internet to the TV.”

Clearly spinning the positive here and obivously using the word opportunity, when threat is perhaps more a appropriate word.

Netflix is a strong and resiliant brand, but it’s going to have its work cut out to defend its turf against the onslaught from deep pocketed players.

Posted by Ed Cotton

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