Netflix (NASDAQ:NFLX) is following HBO's business model of creating original content to stay relevant in the media business. But the company doesn't have downstream revenue channels like cable networks or theme parks available to Disney (NYSE:DIS), Time Warner (NYSE:TWX), or Comcast's (NASDAQ:CMCSA) NBCUniversal. Fool contributor Travis Hoium thinks that will limit Netflix's profit potential and keep it behind old media long-term.
Fool contributor Travis Hoium owns shares of Apple. The Motley Fool recommends Apple, Netflix, and Walt Disney. The Motley Fool owns shares of Apple, Netflix, and Walt Disney. 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.