Netflix not only kills HBO but wants to subvert the entire TV industry


In recent months, media outlets have reported on the battle between HBO and Netflix because HBO is preparing to launch its own network service similar to Netflix.

Netflix, on the other hand, released hypermarket-expected financial data on Wednesday, which gave the company’s chief executive Reed Hastings a good opportunity to remind people that the company is not killing HBO but the entire television industry.

Hastings himself certainly understands this. While Netflix has been happy to regard HBO as a competitive target, Hastings has repeatedly stated that he does not need to rely on the failure of HBO in exchange for the company's growth.

Ted Sarandos, Netflix’s chief content officer, once said, “The reason why HBO was chosen as the target of competition is to make the company become HBO faster than HBO can become Netflix's speed.” Currently, Netflix and HBO The customer base has a lot of overlap.


However, Hastings said on Wednesday that Netflix believes that the real opportunity is not to replace HBO, but to help destroy the television industry, and its immutable, to take away, do not pull down the binding mode.

Hastings expects that the traditional television industry will be replaced by "Internet TV", which means users can freely customize rich applications, networks and channels.

Hastings has been expounding this idea for many years. Hastings mentioned this point in the memorandum to shareholders two years ago. However, Hastings once delivered a similar speech in the earnings conference call held on Wednesday.

He said, "I think you guys should really think about it. Compared with the large-scale binding model, whether it is HBO Now, Netflix or Hulu, it has great value. Although traditional TV has been in existence for 50 years, it is Has begun to flourish. In the next 20 years, Internet TV will replace traditional television Internet TV will allow people to customize the content of the program in the future."

Hastings also said that "the emergence of online sports programs means that users can more autonomous on-demand programs, which also allows them to spend more money on Netflix."

If Hastings's point of view is correct, then the existing television viewing structure created by HBO and other television channels in the past few decades will face an uneasy future. The television industry needs to be more agile and better persuade viewers to pay for what they have.

Obviously, the market is currently more optimistic about Netflix. Barton Crockett, an analyst at market research firm FBR Co, gave Netflix a $900 target share price in an investor report on Thursday. The analyst believes that Netflix's stock price will usher in a big rise. Crockett’s previous target price for Netflix was $400.

Netflix shares surged 86.59 U.S. dollars in regular trading on the Nasdaq Stock Market on Thursday, or 18.21%, to close at 562.05 U.S. dollars. In the past 52 weeks, Netflix's lowest share price was $299.50 and the highest share price was $568.75. According to Thursday's closing price, Netflix’s market value has reached US$34 billion.

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