Netflix Under Attack

So far in the entertainment world, Netflix was simply a small fish competing in a big pond, but as soon as the company incorporated internet access, it has been a major pain in the sides of the major corporations. Kids in high school, collegiate students, as well as older adults, are finding it easier to discontinue their cable or satellite programming if they can get all their favorite shows cheaper on the internet, rather than hauling out the big bucks every month. One flaw they overlooked, was that they believed the corporate giants would fail to notice their progress. Netflix has quadrupled in stock value since their advancements, but Time Warner will not have it.

Netflix has been a business partner to the movie and television studios through licensing deals, but increasingly it is seen as a partner with its hands far deeper in the pockets of the media companies than anyone thought. Through its success, the company has positioned itself at the center of the media universe — at the nexus of technology and content — and is now finding it a place increasingly under attack.

In this recession, of course customers will buy the same product if it is cheaper. The question is "How long will their reign last, if prices escalate from corporate pressure?". Owners of HBO are ready to create HBO GO which will only allow HBO customers to access the network. If the entertainment giants decide to make deals to squeeze Netflix out of business, then loyal customers lose out. This is a prime example of the cutthroat environment that big business has created in order to survive.