Netflix is just one of many channels that provides you with entertainment -- not a competitor to the entire pay-TV ecosystem. As much as Netflix may want to consume all of your leisure hours, content chief Ted Sarandos sounded pretty sober about not being able to do that.
He continued, "We think there's more value in that proposition" -- creating people's next favorite show -- "than there would be in being a low-priced aggregator." Guggenheim analyst Michael Morris, who moderated Netflix's conference call yesterday, pointed out the company hasn't discussed content driving "cyclicality" in subscriber numbers in the past. In other words, this was the first time Netflix has said that its programming may be thing that makes customers sign up for its service.
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Exactly!
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