Effects Of Netflix On The Consumer

Rachael Thain in a recent blog post  , talked about the way which Netflix has revolutionized the the way consumers watch tv shows and movies. It was not that long ago that netflix did not exist and consumers had to either watch their tv shows on cable, or wait for the show to come onto DVD to watch it in the comfort of their own home. Rachael Thain sighted two major advantages to Netflix over Cable TV, the fact that it is cheaper and that it is not regulated by CRTC. The effects of this are very positive of the consumer. For many years, the cable companies have had close to a monopoly over in home entertainment. I think this new competition is great for the industry as I believe competition, and possible loss of profit is the greatest motivator for companies to become more efficient. I think Cable TV has been too comfortable in their industry without the proper motivation to drive innovation choosing to increase prices and decrease service (adding more ads). The addition of Netflix is the much needed “kick in the but” for Cable TV to come up with new ways to draw consumers in. I think there is enough room in the industry for both netflix, and Cable TV however as both go for the top spot in the industry I think it will be the consumers who will benefit.

Leave a Reply

Your email address will not be published. Required fields are marked *

Spam prevention powered by Akismet