I have this theory that you never want to be the first generation of a boom. I call this the “first in, first out” theory. By being the first, you are ultimately writing your death certificate should you not be able to keep up with the growing demand and innovation.
Think Friendster, AOL, and now Netflix (NFLX)? As yet another major content provider is ready to pull its deal with Netflix, the real question is whether the movie distribution company is just growing to fast for itself.
Pay-TV operator Starz, controlled by John Malone’s Liberty Media, said on Thursday it had ended talks to renew a deal that expires February 28. After that date, Starz will stop providing its content, which includes exclusive rights to first-run Sony Corp and Walt Disney Co movies, for streaming on Netflix. Reuters
Fresh off a subscription price increase, it does not look good that Starz is planning to pull their content from Netflix. Especially when Netflix lost rights to Sony content not too long ago. It is a wonder if Netflix will now ever be able to consistently build upon its streaming library.
Luckily at this point of the game, Netflix still has a solid cushion among any known rivals; however, with each passing year the demand keeps pushing from hard copy to electronic and unless Netflix can find some say to wrangle up major content providers (and keep them), look for Netflix to claim a spot on the “first in, first out” mantle.
