Monday, April 11, 2011

Is Google a Threat to Netflix?

Google (GOOG) it appears has made rapidly enhancing content quality at YouTube a priority.

The future at YouTube seems to be strengthening original content and, according to this announcement, improving access to live events.

In itself, this announcement would not seem to be a legitimate threat to Netflix.

What if YouTube also develops other professional content partnerships while continuing to enhance the quality of its original content?

Could that combination become a threat to Netflix (NFLX)?

It's just one view but Martin Pyykkonen thinks so and says as much in this Barron's article.

Netflix: Google's YouTube A 'Substantial' Threat, Says Wedge

The analyst goes on to say that YouTube's immediate advantage over Netflix and other competitors is broad distribution across all devices (PCs, mobile phones, tablets, IP-enabled TVs, etc).

I think it's pretty tough to guess where this is all going but great to watch it play out.

Adam

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