The word 'disruption' is often thrown around these days to describe what the latest flash in the pan tech startup is doing to change the world as we know it.
Whilst buzzwords such as disruption can often be met with cynicism, they are buzzwords for a reason. That's because there are companies out there that are redefining how business is done and how we experience the world.
One such company, of course, is Netflix, a part of the popular FAANG stocks along with Facebook, Apple, Amazon, and Google.
Netflix released its Q3 results yesterday and the release contained their views on the competitive landscape within the entertainment industry and how this is evolving.
I was curious to read this and understand what it means for companies such as Telstra Corporation Ltd (ASX: TLS), Nine Entertainment Co Holdings Ltd (ASX: NEC), Fairfax Media Limited (ASX: FXJ) and Village Roadshow Ltd (ASX: VRL).
Netflix's view is pretty clear. The future of TV is in broadcasting live sports and news. Everything else is fair game and could end up on 'on-demand' streaming platforms such as Netflix.
The announcement said, "Within linear TV, New Fox appears to have a great strategy, which is to focus on large simultaneous-viewing sports and news. These content areas are not transformed by on-demand viewing and personalization in the way that TV series and movies are, so they are more resistant to the rise of the internet. Other linear networks are likely to follow this model over time."
Foolish Takeaway
I'm not big on predictions and who knows, Netflix could be completely wrong. What I do like, however, is their long-term thinking of what the world will look like in the future and the steps they take daily to shape that future.
If you can invest in a portfolio of companies run by management teams with that kind of thinking, then I think you will do well.
If you are looking for your own disruptors listed on the ASX, then you will want to read about these three.
