“I put radio… on the internet.”
In news that surprises no one this week, Netflix CEO Reed Hastings spoke on how he is confident within 10-20 years all TV will be on the internet. In an interview with Jim Cramer on Mad Money, Hastings spoke about Netflix’s growth, why their subscription costs how much it does, and most importantly, the future of the industry.
It shouldn’t come as any surprise that Hastings is bullish on the future of how internet will become the main distribution for television, but there’s no telling how this race will finish, even in the short term. Certainly Netflix has held a handy lead for several years, but the gap is closing, and fast. Hulu and Amazon Prime have made competition for the rights to stream TV extremely competitive, thus increasing the cost not only for the rights to popular shows, but also when it comes to bidding on original shows. Not to mention the handful of upstarts lurking behind who could easily see an increase in market share in the coming few years.
The good news for all these companies though, is that there is plenty of room for everyone. It’s not like subscribers need only pick one streaming service and call it a day. It’s likely as more people turn to digital content providers, paying $5-10 per service allows us all to subscribe to between 2-5 services to cover our needs.