Recently, I was looking at some of the online data that is available on GameFly and I remarked to Motley Fool contributor Daniel Rubin, that I was surprised to see that internet video game rentals hasn’t turned out to be more popular option for consumers. Online video games have been something investors and customers have been very vocal about wanting, yet Netflix CEO, Reed Hastings has stood steadfast in his commitment to stick with just DVD rentals. Rubin’s response to my comment was a true testament to how much Reed Hastings has shown an uncanny ability to understand the DVD market better then anyone in the industry.
Isn’t this yet another spectacular display of strategic leadership by Reed Hastings? The guy’s like a Starship captain flying this sucker through an asteroid storm and outmaneuvering every one and every thing.The man has thrashed Blockbuster (one of the biggest brands in busines history), beat off Wal-Mart, scared off Amazon, and now may have dodged a huge bullet by having NOT wasted time on a failed venture at this critical juncture when time is of the essence. I’ll take Red Envelope Entertainment and the value that will come from proprietary content over video games any day.