Why Netflix's Biggest Weakness Is Also Its Biggest Strength

Skeptics say that Netflix's (NASDAQ: NFLX  ) binge viewing model is a growth deterrent, virtually guaranteeing that the best shows won't gravitate to the streaming network. Fool contributor Tim Beyers offers a different view in the following video.

Viewers get to watch original programming in a cluster if they so choose, and then move on. Often, Tim says, they switch to related content. The empty feeling of finishing a good series is best filled by a show in the same general genre that's well-liked by others.

Even those who leave Netflix after the binge teach the network something, which, in the end, is the point. Netflix isn't an ad-driven business that demands buzz and social chatter in order to get fans excited for their next "appointment" with the show and its accompanying ads. Pay TV, such as HBO, doesn't suffer from this challenge, but the point remains: Netflix is at its best when viewers regularly experiment with a wide range of content.

CEO Reed Hastings doesn't want viewers waiting for the next thing; he wants members watching so his team can gather the data and make smart decisions about where (and what) to invest in next. Investors should want the same, Tim says.

Do you agree? Please watch the video to get Tim's full take, and then let us know whether you prefer binge viewing, or the suspense of week-to-week drama.

Go ahead and touch that dial
The television landscape is changing quickly, with new entrants like Netflix and Amazon.com disrupting traditional networks. The Motley Fool's new free report, "Who Will Own the Future of Television?" details the risks and opportunities in TV. Click here to read the full report!


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2514230, ~/Articles/ArticleHandler.aspx, 8/1/2014 12:00:34 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement