Netflix Moat

[NitroZ7]

The stock has done amazing and it is growing but the one question I always have is what is the barrier of entry? Apple has penetrated most markets in the world and has a vast iTunes store with a lot of movies (many that are not available on Netflix). What would keep them from starting a subscription service as they did with music for movie rentals? Now Netflix does has some original content but given Apples cash what would stop them from buying or joint venturing with a movie studio? I have never bought Netflix shares on these concerns and maybe I missed out but I think if Apple headed this direction it could prove pretty detrimental to Netflix. Any thoughts?

[boneil]

Other companies have started subscription services, and they have some original content, but Netflix has IMHO amazing original content and alot of it. I'm not sure they get bought out, but I do think partnerships are likely. Because of the valuation of Netflix, many things could happen to cause share price to drop, but it would take a pretty big screw up by Netflix for people to unsubscribe. The subscription price is cheap for the what the viewer gets. Every month there's so much new original content that I want to watch. Well worth the price. I'm not sure what it would take for me to pay for an apple or another service. It would have to be a pretty impressive lineup of original content.

[MengRanger]

I just made the comment to a buddy - Netflix seems way overvalued vs their potential income. Great company, but the latest 12 months have driven the stock to crazy valuations. Now Apple has a proven product and profits. I consider them less risky, especially when I see all my daughters friends using Ipads, Iphones... Their market keeps growing.