"If you build it, they will come."
That's why Netflix
That's right -- Netflix and Microsoft may be chummy, but it's not an exclusive friendship. The Sony move adds nearly 9 million potential customers who may have been holding their breath until the PS3 could stream these movies. Now, there is probably a good-sized overlap between the two demographics of existing Netflix subscribers and PS3 owners, so for many users this will amount to just a nice new feature.
Still, this should be good enough to pull in a few fence-sitting video gamers who weren't too sure about this movies-by-mail business. I would have preferred to see Nintendo (OTC BB: NTDOY.PK) joining the Netflix fold because I own a Wii, and so do some 21 million fellow North American Wii gamers. With only 9 million systems sold here, the PS3 is the least attractive partner among the video console makers. Netflix is probably working on a Wii deal behind the scenes, but has "nothing to say about it at this point."
No big deal, though. The overarching goal is to make Netflix streaming available through as many channels as possible. CEO Reed Hastings won't rest until every Internet-connected TV set, game console, Blu-Ray player, TiVo
When we look back at Netflix in 2015 or 2020, the whole DVD-by-mail business will seem quaintly outdated -- a larval stage that helped Netflix build its real strengths, which are industry connections and an unmatched database of consumer tastes. Netflix might become the king of digital media, though rivals like TiVo and Amazon.com
I think it's fair to say that Netflix is off to a brutally good start, though. That's why I'm not selling my Netflix shares despite the recent run-up. I'm in it for the long haul. How about you? Let me know in the comments below.
Fool contributor Anders Bylund owns shares in Netflix, but he holds no other position in any of the companies discussed here. Amazon.com, Netflix, and Nintendo are Motley Fool Stock Advisor recommendations. Nintendo is a Motley Fool Global Gains recommendation. Yes, a stock off the Pink Sheets can be a double newsletter pick! Try any of our Foolish newsletters today, free for 30 days, to find out why we love Nintendo so. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.