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Yahoo’s article “Why Netflix Is Smarter Than Its Customers” does have a good point.  It clearly points out that Netflix CEO Reed Hastings has been so hasty to subtly force his customers to abandon the mail movie service and jump onto the bandwagon of instant movie streaming service.  I would be a perfect example, because I’d abandoned the mail movie service which Netflix has now spinned it into Qwikster.  At the same time, Reed Hastings knows that he will be able to continue milking the old cow, but this time for more money.  How?  Netflix used to bundle up the mail movie service with instant movie streaming service as one package for lesser monthly subscription price, but now by forcing his customers to abandon the mail movie service and embracing the future where instant movie streaming will be proliferated — yet he now can charge his customers 60% more or however more for the same quality as before and knowing that eventually the mail movie service will inevitable fade out like cassette tapes.

Some customers definitely won’t appreciate of being forced to pay more or to abandon the now and embracing the future easily.  Reed Hastings definitely has jumped the gun, but if he is right, Netflix will be just fine in the long term even though its stock price is plummeting while we speak.  I don’t think Netflix will be defeated by its competitors easily, because Netflix service is better than most.  For an instance, Amazon doesn’t have enough movie titles as Netflix even though it offers better deal.  Apple’s iTune model for its movies aren’t as nice as Netflix’s one, because less people are willing to pay for each movie title to be streamed.  Netflix’s one flat price per month for all you can eat instant movie streaming deal is definitely a best business model in all so far in regard to streaming movie market.  Google’s movie model is similar to Apple’s one, and so there isn’t yet a competitor that can easily overtake Netflix.

If Reed Hastings is correct all along, Netflix will bring in a lot more money than ever before eventually, and with extra cash Netflix will be able to overtake Cable and Satellite.  How?  Netflix will have more cash to bid for exclusive movie titles and TV shows.  A good example would be “House of Cards.”  With a lot of if being said, here is one more.  If Reed Hastings’ jump the gun has hurt Netflix real hard, customers may not easily be won back.  This might hurt Netflix for real in regard to its bottom line.  With that being said, I have a feeling that Netflix will be alright for a long time to come, unless something that will be better than Netflix can outmaneuver Netflix in innovations.

Source:  http://finance.yahoo.com/news/Why-Netflix-Is-Smarter-Than-usnews-584478147.html?x=0