Why Reed Hastings' Equating Netflix With Pixar 'Is A Bit Of A Stretch'

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MarketWatch published a story earlier Friday on Netflix titled, 'Netflix CEO wants to take over the world,' in which Netflix, Inc. NFLX CEO Reed Hastings commented, "When you look at studios like Pixar that combine great story telling and the great technological aspects, that’s where we want to be."

Jason Krikorian, DCM Ventures and Sling Media founder, was recently on CNBC to discuss Reed Hastings' comment and whether only quality original content can lead a streaming player to success.

'A Bit Of A Stretch'

"I don't know what their plans might be, but certainly on the face of it, I think it's a bit of a stretch to look at Pixar and the platform – the true technology platform advantage they had – and equate it to what Netflix is doing," Krikorian began. "Certainly Netflix is at an advantage right now and ahead of the pack in terms of streaming at scale, and that as certainly we have seen some other services suffer with their earlier attempts at scale.

Related Link: Pixar Animation Studios To Hit D23 Expo 2015, Aug 14-16

"But I don't think that's a long-term technological advantage. So, I think that that element of this comment is a bit stretched. And, really we are focused on— we are left with this bid on content."

Original Content Only Won't Help In Long Run

Krikorian explained how the focus on original programming can only serve Netflix and other streaming players only in the short run, saying, "There is no long-term contract that any of these guys are really pursuing. And of course, with the availability of all the programming all at once, there's the opportunity for binge consumption. And of course you can get a lot of the value, a consumer can, and then switch to a competing service.

"The early stages are going to be around original programming – that will be the differentiator – but, I think long term, these companies will need to look for other structural advantages in customer acquisition and retention," Krikorian concluded.

Image Credit: Public Domain
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Posted In: Analyst ColorCNBCTop StoriesMediaDCM VenturesJason KrikorianMarketwatchPixarReed HastingsSling media
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