“As Netflix gets bigger, it will be harder to economically outbid them for any title,” says media analyst Mark S. Mahaney, with RBC Capital Markets. “They have the largest indie audience. They have the largest arthouse audience. They have the largest teenage werewolf audience. That puts them at a real advantage.”
Achieving top-dog status is costly. Tony Wible, an analyst with Janney Montgomery Scott, estimates that Netflix will spend $5 billion in programming next year, more than anyone save ESPN. It also eclipses the $4.5 billion that rivals Amazon, HBO, Starz and Showtime are estimated to have shelled out in combined spending in 2014.
The question you have to ask yourself: Are you a creator of content or a creator of tools that distribute and connect and if you’re a creator how are you going to distribute your content?