If you look closely at what is happening at Netflix (NASDAQ:NFLX), you can see that a sea change is occurring in how the company is approaching the market. Where competitors like Redbox Instant -- the joint venture between Coinstar (NASDAQ:OUTR) and Verizon (NYSE:VZ) -- are pushing for quality movie content, the original video streamer is letting titles fall out of contract and focusing instead on original and exclusive content. Netflix is clearly focusing on drawing business from customers that want what only it has.
While premium cable channels, including Time Warner's (NYSE:TWX.DL) HBO, are offering a streaming option as well -- often with better functionality than is available through traditional means -- these are add-on services to their primary cable subscription option.
In the video below, Fool.com contributor Doug Ehrman discusses where Netflix seems to be headed, why, and how this strategy may play out in the future.
Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Netflix. The Motley Fool owns shares of 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.