Netflix, Inc. (NFLX), Facebook Inc (FB): House of Cards Changes Everything

Even Apple Inc. (NASDAQ:AAPL) could be considered a competitor in some sense. The Cupertino giant has a different a la carte model for video, which is more suitable for premium content. There is enough room for both companies to do well as long as their offerings don´t necessarily clash, but it´s still not clear to what degree Apple and Netflix can be considered partners or competitors. Apple has ambitious plans when it comes to TV, and it’s certainly stronger than Netflix from a financial point of view.

And this considers only two big and powerful giants, it’s worth noting that smaller players like HULU and Coinstar, Inc. (NASDAQ:CSTR) are trying to make inroads into the business and steal a piece of the pie away from Netflix too. The main point is that the streaming business is getting crowded, and that´s why it´s so important for Netflix to differentiate itself from the competition if the company is going to maintain its leadership position in the industry.

Bottom line

Streaming is an area with enormous long term potential on a global scale. the big question for Netflix investors is whether the company can sustain its leadership in the face of increasing competitive pressure.

House of Cards is not only another successful product that the company is adding to its library; much more than that, it’s about the company proving to the public and to investors that it has the ability to capitalize on big data and create high quality exclusive content that differentiates itself from other payers in the business, and that´s why it’s a game changer for the company.

The article Netflix: House of Cards Changes Everything originally appeared on Fool.com and is written by Andrés Cardenal.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.