The MGM deal falls on the heals of the Paramount Pictures deal Google announced just few weeks back and of course the Disney, Pixar and DreamWorks deal back in November. All in, YouTube has signed five of the six major studios (Fox is still the holdout) which puts it on pace to bring my prediction to fruition that YouTube will soon make NetFlix irrelevant in the long-term, at least in regards to its online streaming business. Especially when you consider all that free Nigerian Porn YouTube offers from 10+ independent film makers (just kidding…). Seriously however, with YouTube’s 800 million users vs. Netflix’s 46 million users, there’s no doubt that YouTube is a force to be reckoned with and it will be interesting to see how the online streaming business adapts to this massive disruptor. That said I do agree – Youtube is a monster and I see it taking market share away from Netflix in the long-run. I think this will create a pricing war which i’m all for so this is BAD for the netflix margins and stock holder however I think it’s good for the consumer and will just keep NetFlix honest and low margin vs. putting them out of biz. Comment Name * Email *
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