Why Netflix's Biggest Weakness Is Also Its Biggest Strength

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Skeptics say that Netflix's binge viewing model is a growth deterrent, virtually guaranteeing that the best shows won't gravitate to the streaming network. Fool contributor Tim Beyers offers a different view in the following video.

Viewers get to watch original programming in a cluster if they so choose, and then move on. Often, Tim says, they switch to related content. The empty feeling of finishing a good series is best filled by a show in the same general genre that's well-liked by others.

Even those who leave Netflix after the binge teach the network something, which, in the end, is the point. Netflix isn't an ad-driven business that demands buzz and social chatter in order to get fans excited for their next "appointment" with the show and its accompanying ads. Pay TV, such as HBO, doesn't suffer from this challenge, but the point remains: Netflix is at its best when viewers regularly experiment with a wide range of content.

CEO Reed Hastings doesn't want viewers waiting for the next thing; he wants members watching so his team can gather the data and make smart decisions about where (and what) to invest in next. Investors should want the same, Tim says.

Do you agree? Please watch the video to get Tim's full take, and then let us know whether you prefer binge viewing, or the suspense of week-to-week drama.

Go ahead and touch that dial
The television landscape is changing quickly, with new entrants like Netflix and Amazon.com disrupting traditional networks. The Motley Fool's new free report, "Who Will Own the Future of Television?" details the risks and opportunities in TV. Click here to read the full report!

The article Why Netflix's Biggest Weakness Is Also Its Biggest Strength originally appeared on Fool.com.

Fool contributor Tim Beyers is a member of the  Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Netflix at the time of publication. He was also long Jan. 2014 $50 call options. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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