Netflix chief executive officer Reed Hastings plans to see his streaming video service mirror HBO and to become the largest streaming entertainment source.
At Amazon’s big cloud event in Las Vegas, with Amazon’s senior VP Andy Jassy, Hastings told the audience that he wanted Netflix to be the largest business in the world that runs entirely on Amazon.com, Inc. (NASDAQ:AMZN) Web Services.
A video service mirroring one of the largest channels like HBO, and without the hassle of a cable subscription seems like a bold plan, which, if the company succeeds in pulling it off, will entirely change the way we watch TV.
Aiming for the HBO original content legacy, Netflix, Inc. (NASDAQ:NFLX)’s airing its first exclusive series, Lillyhammer, debuted in January 2012, along with a sitcom, Arrested Development, in an exclusive run on Netflix.
A company that initially started off by shipping DVDs to customers is now in a head-to-head competition with the already established TV network giants. What makes it different is its intent to do something that other television networks have never done. Netflix aims to keep track of viewer’s TV habits and preferences. This record will help it determine which show is going to be the one with the greatest hits.
As we mentioned before, how ever well thought a plan is, managing a streaming traffic on a routine basis and making sure that the content it airs remains unique enough to stay ahead of the market challenges from Amazon.com, Inc. (NASDAQ:AMZN), Vudu, and HBO GO is not an easy step.
During the third quarter earnings call, Hastings answered these challenges by saying , “If we do our job right, there’s always a reason to be a Netflix, Inc. (NASDAQ:NFLX) member on the original side, in addition to the license side,”
Counting mainly on data mining and algorithms to find out about people’s preference and habits, Netflix, Inc. (NASDAQ:NFLX) is likely to get an edge in finding and building an audience until it rises to a position where it resembles the major broadcast networks.