Verizon to take on Netflix

The Gauntlet has been thrown: Verizon is building a Netflix competitor.

OK I'm skeptical – at this rate the competition is ramping up – but it sounds like they've got a focused plan (movies and kids' shows) and remember they've also got a presence on the new XBox.  So it's not unreasonable – and like Game Stores, it seems we're oddly at a place where people would rather launch a redundant service than miss out.

Takeaways:

  • Netflix is vulnerable, and I think their response will actually be internationalization.
  • OnLive is somewhere in all of this mess, with giant streaming system NO ONE IS TALKING ABOUT.
  • Verizon has a big "captive audience" they can leverage (and more with XBox).
  • Verizon is going to have to hire/employ people to do this – which may mean jobs.  If others jump in on this, more jobs.
  • People are still talking big, not small content.  I'm concerned smaller producers may get squeezed out.

(Oh and side note to Netflix CEO Hastings – do not compare yourself to Bank of America.  Man, I'm starting to feel my faith in Netflix is misplaced – but not enough to suggest you look elsewhere for work.)

Steven Savage