There were a few positives in Netflix's quarterly report Tuesday, but the stock fell 14% thanks in part to mixed results and uninspiring guidance. But the real reasons investors fled are more complex -- and disturbing.
It's getting pretty crowded in the streaming space. Comcast is the latest company to throw its hat into the digital ring: It will offer existing cable subscribers access to streaming TV shows and movies through a new service called Streampix. And other streaming services, from Netflix to YouTube, are offering original content.
It sometimes seems like every new idea Amazon has dreamed up lately has been designed to help it lose money more efficiently. But the truth is more subtle: If it doesn't take these short-term hits now, it's destined to get crushed in a few years when the tax men come a-calling.
Amazon.com may be gearing up to start charging for the unlimited video streaming service it now includes free with Amazon Prime. Sound familiar? Of course it does -- just rewind a few months to a summer that Netflix would certainly prefer to forget.