I’ve always loved Netflix. \u00a0I was a very early subscriber, and we still carry the DVD plan even though we rarely use it (we’ve had some DVDs out for years). \u00a0 And Reed Hastings has done something that few CEOs and companies have done: \u00a0start\u00a0business\u00a0A, then successfully build and enter new business B.<\/p>\n
But I think they’ve entered a very vulnerable period. \u00a0 Their streaming deal problems<\/a> have been well-reported, but there’s a much deeper (and fundamental) issue looming: \u00a0they don’t control any user “on-ramp”.<\/p>\n The consumerization of access devices, like tablets, mobile phones, and e-readers gives companies like Apple (and soon, Amazon<\/a>) immense control. \u00a0In some cases, it’s overt (e.g. lack of Flash support, the app approval process, etc.) \u00a0In other cases, it’s done by controlling the preferred user experience: \u00a0given the new subscription support in iOS 5, why would users want to do subscriptions any other way?<\/p>\n It will be increasingly easy (and cheap) to watch movies on Apple and Amazon devices, gradually squeezing Netflix out of the party.<\/p>\n","protected":false},"excerpt":{"rendered":" I’ve always loved Netflix. \u00a0I was a very early subscriber, and we still carry the DVD plan even though we rarely use it (we’ve had some DVDs out for years). \u00a0 And Reed Hastings has done something that few CEOs … Continue reading