Netflix (NASDAQ: NFLX) has profited greatly from viewers who have been desperate to cut the cord on expensive cable plans but still craved quality programming. And the company’s popularity has skyrocketed with the success of more recent original programming. Now, though, it seems cable is getting ready to fight back.
The question is, will it be too late or will it be too much?
What’s happening is that a whole slew of traditional networks are now starting to provide streaming, and a lot of them already have a great deal of popular programming.
There’s no question that streaming is the best bet for the future. There are no viewers more loyal than sports fans, and yet Disney has seen its ESPN division continue to weaken as cable subscriptions get cancelled. While Netflix was the first to jump wholeheartedly on this bandwagon, when it began offering the option in addition to DVDs, everyone else is now ganging up on it, too.
Showtime, HBO, CBS, Hulu and more are all offering streaming options, not to mention the offerings by other online programmers such as Amazon and YouTube.
And now, even Snapchat is getting in on the act. With massive numbers of active users providing more than 10 billion video views every day, the potential for disruption is obvious. Plus, the company is getting ready to launch what is rumored to be a multi-billion dollar IPO.
In which case, it will have more than enough funds for expansion and development.
Still, Netflix won’t go down without a fight, and there is also always the possibility of a buyout from someone like Apple who could use it as a content booster. Also, if you value the opinions of legendary investors, regulatory filings revealed on Monday that Soros Fund Management, George Soros’s hedge fund, bought Netflix stock in its third quarter.
So, apparently all hope is not lost. Yet.