Why Parallels Between Netflix and Amazon Should Worry Media Titans

[Commentary] Imagine you run a global media conglomerate. Say you’re Robert A. Iger, the chief executive of Disney, or Brian L. Roberts, of Comcast, or perhaps you’re slightly lower down on the ladder of behemoths — the boss of Twenty-First Century Fox or Time Warner, perhaps. In any case, you own a lot of valuable stuff: movie studios, broadcast and cable TV networks, perhaps a broadband infrastructure, maybe some theme parks with roller coasters and a few impressive castles.

So here’s a question for you, my media-mogul friend. How worried are you about Netflix? And more to the point: are you worried enough? What if Netflix is the Amazon of the entertainment industry — the embodiment of a slow, expensive, high-risk effort to consume the entirety of your business? The good news for you is that there are lots of reasons that Netflix’s strategy won’t work. The bad news: So far, it just keeps working.