Boston, MA 05/30/2014 (wallstreetpr) – Netflix, Inc. (NASDAQ:NFLX) is not interested in venturing into streaming device business no matter how lucrative the business has become in this age. Instead, the company will focus on boosting its subscription-video streaming business. In choosing to stay away from streaming device business, Netflix just put more ammunition in the hands of rival Amazon.com Inc (NASDAQ:AMZN).
In addition to competing with Netflix in online video streaming service, Amazon has ventured massively consumer electronics business, and it launched its Kindle Fire TV earlier this year. The device supports online video streaming. Amazon’s diversification is also causing headache even to other device providers such as Comcast Corporation (NASDAQ:CMCSA).
According to Netflix CEO, Reed Hasting, the market for streaming devices is almost saturated, and the company does not see any big value in venturing into the market when it can keep its streaming customers satisfied on the streaming devices that they already own.
Instead of providing its own streaming devices, Netflix, Inc. (NASDAQ:NFLX) recently entered a deal with Comcast to boost its streaming speeds. About one month after entering into a deal with Comcast, Netflix reported that its subscribers experienced better streaming speeds.
However, the company intends to do more so that it can keep Google Inc (NASDAQ:GOOG) with its YouTube service out of serious online streaming business. After all, Netflix understands its commitment to the shareholders is about making profits and there is no better way to do that than providing the best services.
No live sports for now
It may come as an unpopular decision by Netflix, Inc. (NASDAQ:NFLX), however, the company believes that venturing into licensing of live sports is not its cup of tea at the moment. In any case, the competitive nature of sports rights bidding makes the whole thing exorbitantly expensive that the company might not see a positive impact on its bottom-line.
In avoiding licensing of live sports, Netflix, Inc. (NASDAQ:NFLX) seems interested in remaining an online video streaming channel than a television provider.
Shares of Netflix, Inc. (NASDAQ:NFLX) are up nearly 14 percent since the beginning of 2014.
