Netflix Now Competes with HBO, Showtime, Starz

Virtually everybody believes that online video competes with multichannel video services, for user engagement and time if not yet so much revenue.

The corollary is that Netflix competes with Blockbuster, Redbox But one might argue Netflix increasingly also competes with the "premium" networks such as HBO, Showtime and Starz.that historically have made a business out of showing movies.

Netflix soon will have as many subscribers as Starz and Showtime put together. At the very least, Netflix growth is going to cap premium channel growth. One can argue about how much Netflix competes with the "basic" channel subscriptions most Americans buy.

So far, one might argue that is a lesser, hard to quantify level of competition. Right now, Netflix has largely vanquished its DVD rental competitors and might be viewed as cannibalizing the premium channels next.