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Let's not about what's going on in that.
-- commander of his with a say now author of out think the competition.
I am glad you're here because we just get this news today that Comcast is gonna start basically taken on -- -- yes how negative -- Well they're gonna offer -- video streaming service and -- you can kind of see it coming if you look at the past history of cable companies and really of any large company that competes with small innovators like Netflix.
It follows a predictable pattern and if you look at their past performance against key though against -- -- they're.
Playing a playbook that they've that they've proven many times.
What does -- mean that means that the cable companies.
While they might be one step behind -- come up with a Netflix idea.
Will eventually catapult right over exactly one step behind I called the strategy of to catch something first let it go and you can see them playing out over and over again.
We got to understand about the pattern is that.
There are three sources like the company wants to have a sustainable competitive -- freeways to do that real.
Have customer captivity lock in customers have economies of scale.
Or have a locked in resources preferential access to resources right and so cable comes because they have a locked in.
We've got a illegally should -- with us.
They can pretty much so -- anything that they want to and they can allow these innovators to start selling the stuff -- on the sidelines and then wins when the fruit is right so to speak.
Look at -- from the tree.
Are they going to be able to do a better though because -- that clicks.
Is making mistakes left and right I think yeah.
-- why I don't I think but I don't think it really matters that they have -- have to do better.
I think -- I think that he's still he's in C players and who have these -- -- -- events they don't even we won't even have many options for example Comcast I think two days ago announced that it wasn't gonna.
What it was into the stream Netflix is it as a -- -- -- them that they'll play for Netflix is.
To become -- TV channel like HBO right you have proprietary content right.
Which he's it has to find a positioning in each it has a personal producing its own content to shift -- -- to act.
And then just become too of one of that one of the place and and and caucus is used to playing that game how much are gonna and I got to pay for Animal Planet -- -- gonna pay for HBO.
-- -- -- -- -- -- I guess is it one of the advantages Comcast you obviously -- their continent right Netflix can't get new stuff I mean that's complain even down to my kids who doesn't know nothing basically yes they say it's -- new stuff that's right and now that's one of the reasons that you -- Comcast you know their their their acquisition -- of NBC universal rate was and where to start -- -- contact you know they -- content is -- -- -- -- -- content and you can own customers we've got two of these three.
-- pillars of competitive with the pace -- -- Comcast does it doesn't mean Time Warner Cable can't do it doesn't mean all the cable companies can get in this this absolutely actually and I think that they will I think that we've -- them offering all kinds of services from a monitoring homes to.
You up to -- streaming these -- -- any type of service because they can leverage that billing relationship and then Watson let us you know -- I have Verizon let's just say rising long lock me in and start offering some sort of streaming something in the Nixon -- -- no reason go anywhere else that's right that's right it just has to be good enough doesn't have to be great but you know it's just we're we're releasing -- could happen yeah we'd rather not open up a new account -- receive another bill well.
Yeah get out of -- -- -- to paying fees and charges in on a kind of -- really want to deal with the right in the village just with the then they'll play with the pricing -- that you know if you if you just such a little bit more -- further for their phone service to turn depend on for phone you get that you know the that the triple play in the quadruple play.
And it becomes harder for the freed on extract itself from the catch up is that the future than the streaming video I mean is -- the actual cable TV on a big box gonna go away.
Yeah I think so I think that it does not gonna matter what street what what.
What we'd be going up I do I do a lot of work with some technology companies like Microsoft didn't talking about for the first forever for you know that there's not gonna back about -- what's what what what's screen you're looking -- we look at a mobile device.
-- -- Your your computer or your television where you go you -- to go see the content that you wanna see in that's that's the vision of the future so they don't care where you're watching is what you're saying exactly.
You're watching it exactly and that's what she Comcast and other cable companies signing these agreements with content provider said that allows them to provide that content -- you even if you -- at home.
You're in the airport -- here plain hate you could turn on your Comcast.
You know what happened you can watch your jobs is apple TV a threat to all this yet apple apple TV is threat told us that the thing that apple -- and it has gotten.
Will customers to have a customer.
You know captivity yes and they happen to be very good at playing the on the content game they just signed an agreement with four major -- I'm movie producers to -- provide -- content on any apple device which is a big announcement.
I think yesterday -- today.
And -- the good point they can be and what they created with iTunes for example shows because the -- right but with the mrs.
That there is no reason that you have to have a relationship with apple because there's no.
Cable when it's your house right see you don't have to have a relationship.
Right which is about anything in and of itself that all these people are doing this by choice.
Right I am choosing to good apple yes -- I don't have to and that is why apple has supply great service right.
Because Comcast doesn't have to because paid even if you're right literally -- that exactly customer captivity economies of scale preference I think you can argue that it's.
Worth it to good apple because they are taking the extra step to keep me there -- they don't have to be there in the first place yes that's true that's true now.
If people search using apple then Comcast is gonna.
Flex its muscle and say hey wait a second you're connecting through your apple TV through our.
For our line -- your house you know.
They might try to leverage that to to make it more to therapy that it -- -- Amazon's been standing on I think is a major player I think you can't yes they have devices they have contents and they have relationships with customers I saw a conference which of Jesus was speaking.
And so when asked him what business for you and he said we are in the business of protecting customers information.
Citi they really see themselves as your trusted source for content in goods and -- with the with Amazon prime that got.
Millions of us in this habit of hey I want twelve Paper.
I'll buy from Amazon so they get that happened and they have that customer captivity so I think -- -- magically.
And that that they started streaming already see searching for Amazon prime 79 dollars a year you can you can watch a whole number of movies are increasing -- live -- -- Netflix yet.
And it's still kind of older.
-- you know older content.
But you can get that there are recently but let's face up to my final question -- -- is what happens Netflix -- ago way.
Netflix goes away even begun to TV channel and work its acquired and gets on gets plus yeah yeah I think so they made mistakes and they when they change their -- -- And I guess the basement.
What -- -- it was a mistake that the biggest obstacle to Netflix is their inability to get.
First street content is an.
Yes I think so I think so I think that the I think that this was destined and I think they saw it coming which is why they wanted to split the business of streaming and dvd -- -- no one can compete with the dvd business that is that this is that they can keep.
And they can protect right so they could separate those they could sell the streaming business and keep the dvd business but.
There was uproar that's getting together pretty -- dvd business is gotta go away that's been delayed but you know eight you can expect in seventy billion figure -- -- your rate gaps in Redmond that -- Interesting stuff right.
Contravene -- author of out think that competition to have a look -- you can follow him Patrick on its KK -- -- HA and -- dot net.
Dot -- yet.
Excellent that is great thank you so much.
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