Netflix Vs. H-P

The Internet now threatens the profitability of both firms. H-P has grown into a diversified maker of personal and enterprise computers and peripherals. Nevertheless the shift to so-called cloud computing means processing power and data storage are being concentrated into the hands of a few, to be accessed as needed by consumers and workers toting smart phones and tablets. Some old-guard tech firms have been nimble enough to prosper in the cloud. Yet H-P is not but among them.

Netflix, at that time, may ultimately have to settle for a smaller cut of profits in its streaming business than it did with DVDs. It as well doesn't help that steaming has attracted heavyweight competitors, including Amazon, Apple and the cable operators.

Netflix raised prices in a recession, at the time split its DVD and streaming businesses and renamed the latter, at once undid the split. That angered clients, 800,000 of which left while the third quarter.