NetFlix (NFLX) is making another move to keep it ahead of rivals including Amazon (AMZN) and Blockbusters. It will adding its video-on-demand service to the Microsoft (MSFT) Window Media software. According to CNET, “For Netflix, the partnership offers the Web’s No.1 video rental service the chance to reach scores of of Vista users.”
Although Vista sales have been disappointing for Microsoft, it is still the most-used PC operating system after Windows XP. NetFlix will now have the opportunity to market its video streaming services to millions of potential customers.
Many analysts have speculated that VOD products from cable companies and new competitors including Amazon would sharply erode NetFlix’s market share. That has not happened and the Microsoft deal provides insurance that it can hold its lead in video rentals well into the future.
Douglas A. McIntyre