Here's what Netflix is predicting about the future of TV

The future of TV is being disrupted and Netflix is the chief disruptor

a woman

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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.

Kevin Gandiya owns shares of Alphabet (C shares), Apple, and Facebook. You can find Kevin on Twitter @KevinGandiya. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, Facebook, and Netflix. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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