>Buying content within a window is essentially like an auction. The highest bidder wins. It's possible to enter the market, but to do so you actually need a lot of capital to bid and win content.
I think Amazon has sufficient capital to go to auction, also, in general, capital comes 'cheap', if someone has a business plan with a reasonable shot at success they can get VC money. If your expectation that a barrier to entry is purely capital costs, well...you better hope no investors want to back a competitor, there is plenty of money out there.
>Reed publicly stated that a major goal in the future is to pay studios more for content. And that's only fair as we increase the number of viewers.
Well, from a business perspective fairness isn't what matters, he should strive to retain as much of the 'pie' for Netflix as possible. His concession that he 'wants' to pay content producers more seems like PR, more likely he has no choice. It is good and fine to say you want studios to make more money on content, but I don't think history has shown either the movie or music industry care terribly much about how much profit their partners make, and they can drain any profit by increasing licensing costs anytime they want no? The more successful you are in streaming it seems the more you are exposed to this risk.
I think Amazon has sufficient capital to go to auction, also, in general, capital comes 'cheap', if someone has a business plan with a reasonable shot at success they can get VC money. If your expectation that a barrier to entry is purely capital costs, well...you better hope no investors want to back a competitor, there is plenty of money out there.
>Reed publicly stated that a major goal in the future is to pay studios more for content. And that's only fair as we increase the number of viewers.
Well, from a business perspective fairness isn't what matters, he should strive to retain as much of the 'pie' for Netflix as possible. His concession that he 'wants' to pay content producers more seems like PR, more likely he has no choice. It is good and fine to say you want studios to make more money on content, but I don't think history has shown either the movie or music industry care terribly much about how much profit their partners make, and they can drain any profit by increasing licensing costs anytime they want no? The more successful you are in streaming it seems the more you are exposed to this risk.