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FCC Decision: Netflix Face Increased Competition

by Naresh Sarwan on June 22, 2010

As reported on Seeking Alpha, Video on Demand provider, Netflix potentially face increased competition as a result of a US FCC (Federal Communications Commission) decision:

A recent Federal Communications Commission (FCC) decision is likely to increase competition for Netflix as it clears the way for new films to be made available on-demand before such films are available on DVDs. The FCC decision allows movie studios (like Paramount, 20th Century Fox, Disney Studios) to block analog signals on TVs and video recorders when consumers purchase their latest on-demand movies.

The article continues:

While this move gives movie studios more control over their content offering, it also gives a boost to cable providers that compete with Netflix to deliver the latest films to consumers.” [Read More]

Whether Netflix view the new releases market as especially significant is debatable (see the comments in the article above), however, there is competition in the archived market potentially looming from YouTube and other Video on Demand providers.

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