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.
Blake Bos has no positions in the stocks mentioned above. Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Walt Disney and Netflix. Motley Fool newsletter services recommend Walt Disney and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.