The Way of the Wolf Netflix Fights Like a Wolf [Hot Topics] April 12, 2006

How cool is this? My recent post on Netflix business practices was selected as the Motley Fool Hot Topic of the week! A snippet:

Does anyone think that Netflix really wants or expects an injunction out of this? This is really about widening the moat, isn't it? Well, widening the moat and then putting pointy stakes in the water just in case someone wants to jump in.

Sure: if they win, then everyone else who wants to play in their market has to not only differentiate their brand, but also prove that their business model is substantially different than Netflix's patented process. Obviously, that would be tough to do now that Netflix and Blockbuster have established the all-you-can-watch, order-by-queue model as the standard. A new player would have to be as disruptive as Netflix was when it started. Oh, and Blockbuster Online would be either shut down or become, essentially, a Netflix franchisee.

So, a win would be great. But is that the only reason (or even the most pressing one) for Netflix to file this complaint now? After all, they risk losing, which would not
only pull the stakes out of the moat, but would also throw a couple of makeshift
bridges across it for intrepid raiders to charge across. So why take the

I think that this is more than a winner-take-all battle with Blockbuster, and I think, honestly, that winning the case is incidental, at least in the short term....

Read the rest here.

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