Is Streaming Good Business?

Netflix  (NASDAQ: NFLX  ) has a big first-mover competitive advantage in the subscription-based streaming media business at the moment, but is the streaming business a good one? In this video, Motley Fool analysts Blake Bos and Isaac Pino echo Warren Buffett's advice -- namely, to think like a business owner and ask yourself before you invest in Netflix, "Is this company's business an industry that I would want to be in?" They explore how ever-increasing high content costs mean that companies offering streaming content are facing thinner and thinner margins, and look at how investing in content producers compares to investing in the companies offering streaming content.

The precipitous drop in Netflix shares since the summer of 2011 has caused many shareholders to lose hope. Can Netflix fend off burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why we've released a brand-new premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.


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