June 5, 2013 at 10:33 am

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Jon Markman recently said, “Investors have decided that content is king in the new world of mobile and home entertainment — not hardware or software.”

He cites Disney (DIS) as a beneficiary – any others come to mind?

“Everyone must choose two pains: The pain of discipline, or the pain of regret.” Jim Rohn

June 5, 2013 at 3:06 pm

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It will definitely be interesting to see how that plays out (pun intended). I’m sure licensing fees make it very difficult for companies like NFLX and Pandora, but people love their product (myself included) because you’re getting something for nothing, or almost nothing in NFLX’s case.

Perhaps the companies that provide the hardware to access these services are getting the better end of the deal (Microsoft’s XBOX 360 and Apple TV for example), because it’s not the main part of their business. A lot of people buy those products specifically so Netflix and Hulu, etc can be a seamless part of their living room entertainment system.

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June 5, 2013 at 3:06 pm

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It will definitely be interesting to see how that plays out (pun intended). I’m sure licensing fees make it very difficult for companies like NFLX and Pandora, but people love their product (myself included) because you’re getting something for nothing, or almost nothing in NFLX’s case.

Perhaps the companies that provide the hardware to access these services are getting the better end of the deal (Microsoft’s XBOX 360 and Apple TV for example), because it’s not the main part of their business. A lot of people buy those products specifically so Netflix and Hulu, etc can be a seamless part of their living room entertainment system.

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June 5, 2013 at 4:28 pm

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Yeah I can def see that re: the hardware. I love my Roku and if I could trade that company I would!

There’s also the premium content providers like Time Warner (TWX) who I believe is the owner of HBO. I’d buy the heck out of that as soon as HBO stops being dumb and allows people to buy their HBO Go streaming product directly instead of having to subscribe via cable/satellite.

June 6, 2013 at 11:05 am

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I love my Roku, too! I can’t believe how long it took us to make the switch from cable. So maybe, then, the play IS shorting TWX or similar providers, or going long Internet providers.

Edited by Moderator Val:
Edited by Moderator Val:

“Everyone must choose two pains: The pain of discipline, or the pain of regret.” Jim Rohn

June 22, 2013 at 3:29 pm

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I recently read that NFLX takes up over 50% of the entire internet bandwidth. So I would think that any company that has a hand in expanding this bandwidth in a any way will benefit longterm, especially as more streaming video services become more popular.

AKAM is one name that pops into my head, but they are already known. Anyone know of a smaller unknown name with a new innovation that has the potential to become huge in this space?

INXN looks interesting, but it is not a US company and it looks overvalued already. INAP looks interesting too.

Buzz339

June 24, 2013 at 11:51 am

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Limelight Networks (LLNW) is listed as a competitor and has a SIGNIFICANTLY smaller market cap. I’m not familiar with LLNW, but might be worth a look. It’s based in Tempe, AZ.

“Everyone must choose two pains: The pain of discipline, or the pain of regret.” Jim Rohn

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