Netflix (NFLX): On More Box For The Top Of The TV

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
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In many homes, the TV is topped by a cable box, a DVR, a satellite box, a PC, a Slingbox, and an Unbox from Amazon (AMZN). Netflix (NFLX) thinks that television can hold the weight of one more gadget.

But, it is a pretty good one. The movie rental firm is offering a $99 device which will give consumers instant access to thousand of movies in the Netflix (NFLX) library. The best part of the deal is that current Netflix subscribers don’t have to pay more for the service.

Netflix has one big advantage over many of its competitors in the video-on-demand business. It already has 8.2 million customers who have been amassed over years and at the cost of hundreds of million of dollars. Now Netflix wants some additional yield out of those people.

The genius of the Netflix product is that it leverages the company’s current content and customer base without any additional investment. Whatever money the rental operation brings in should go right to the bottom line.

The move is as clever as it is simple.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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