Variety is reporting that online DVD rental upstart Netflix
Alyce Lomax reported recently that Netflix enjoyed an 84% increase in subscribers for its video-by-mail business last year. With 30% of that occurring last quarter, it's clear that, even as Wal-Mart
Alyce also did an excellent job of establishing that VOD and other alternative media like Motley Fool Stock Advisor recommendation TiVo
This won't come easily. Studio giants like Sony
Other competition includes Disney's
Indeed, when it comes to VOD, Netflix's main weakness may be the extent to which the movie studios seem interested in dominating the digital transmission of movies. Then again, the movie studios failed to dominate the theater business, so why cede the VOD market?
Netflix is free cash flow positive and sits on $135 million cash and a high-priced stock. It could certainly turn to acquisitions to enhance its VOD opportunity. Meanwhile, as it looks for ways to exploit new technologies, the company continues to grow its traditional market (including internationally). This one could have a happy ending.
Fool contributor W.D. Crotty owns stock in Disney and is a Netflix customer. Was it not dumb that W.D. didn't buy Netflix or TiVo -- especially after writing about Netflix again and again and being a Motley Fool Stock Advisor subscriber?