Target did Netflix a huge favor by introducing a new streaming service, Fool contributor Tim Beyers says in the following video.
How so? Target's Ticket offering is undifferentiated. Shoppers can sign up to rent or buy titles, just like the services offered by retail rivals Wal-Mart and Best Buy. Streaming isn't on the menu, which means Target isn't so much after Netflix as it is Apple's iTunes, a market leader that already supports more than 800,000 TV and 350,000 movie downloads daily.
Think about what that says. Target has plenty of resources. So does Wal-Mart, Best Buy, and Apple. And yet no one other than Amazon.com and Redbox has shown any interest in competing with Netflix directly, and even those two hedge by offering new-release rentals.
Will it continue to be this way? Just how durable is Netflix's advantage? Tim answers these questions and more in the video. Please click below to watch now.
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The article An Off-Target Attempt to Derail Streaming Stocks 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 Apple and Netflix at the time of publication. He was also long Jan. 2014 $50 Netflix 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 Amazon.com, Apple, and Netflix. The Motley Fool owns shares of Amazon.com, Apple, and 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.
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