This was a tough week.
Despite my best efforts, I struggled to find articles about Netflix that did not pertain to new content or “This falls hot new shows.” In lamenting and vocalizing about my struggles, a friend mentioned how Netflix is a “non problematic company.”
This got me thinking, and I soon realized she was right: Netflix is not a that company draws attention. It does not have an obnoxious ex-CEO like Travis Kalanick that is constantly under allegations of sexual harassment. It does not have an outspoken founder like Elon Musk, who just this week was asked to resign by the SEC for misleading investors. No, Netflix CEO Reed Hastings is a generally level headed man, working quietly out of his headquarters in Los Gatos, California and slowly, but surely, changing the technological and cultural landscape of the world.
And while that might make analysts like me a bit weary and disappointed, the message to investors is one of stability and growth. It is vital to be confident in one’s CEOs, for poor command at the top of a company inevitably leads to more problems down the road. So hang tight Hastings; I know my disappointments are short sighted and selfish.
Although I did not find any articles regarding current developments with Netflix, I did read another article on Motley Fool that discussed the ramifications of Netflix joining the Live TV industry.
The article discussed how Netflix will adapt to changes in its originally niche market. With the presence of firms such as Hulu, Amazon, and HBO moving into the live streaming realm, Netflix might want to think about its own future in live content. With only more niche companies arriving into the on-demand realm, Netflix will need to make some changes to continue its dominance.
I am not really sure how I feel about this. I think Netflix could probe its users with the possibility of live TV, but I think they would struggle to gain licencing agreements when competing with more established telecom companies. I do think they need to add some dimensions to their business model, for there will only be more companies competing for their users in the future.
It’s even possible Hastings will have to put on his boxing gloves and make some waves in the industry. But for now, with his head beneath the radar, Hastings is doing a pretty good job of leading Netflix into the unknown.
Until next week ladies and gentlemen.