With the bankruptcy of Blockbuster and the closing of most traditional mom-and-pop video rental stores, it’s been interesting to see how market disrupter Netflix is now facing more nimble foes. Though it still dominates the mail-order video rental market, Amazon, Hulu, and even iTunes have worked vigorously to tackle its market share in online video streaming. With all our worries about monopolies when it comes to cable and telecom companies, it’s fascinating watching real market competition in this field.
Lately, we’ve seen YouTube quickly entering the competition:
Google is about to expand its movie-on-demand offering through YouTube, according to The Wrap. The expansion of the library to include titles from major studios will purportedly begin in the next week or two.
Rumored licensors include Sony Pictures Entertainment, Warner Brothers and Universal, including smaller studios such as Lionsgate.
The reason so many companies have been able to compete with Netflix is because each comes with significant market share — Amazon already had millions of credit cards on file and sold DVDs; iTunes had its large music base; YouTube already has billions of monthly views on its amateur video. This might give key insight into how other companies with huge market shares — Google for search engines, Facebook for social networks — can face real competition.