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Mark Cuban Betting On Netflix, Inc. (NFLX), Calls Net Neutrality “The Dumbest Stuff Ever”

Hedge funds and billionaire investors are dumping Netflix, Inc. but the company has one billionaire siding with it. Mark Cuban, the billionaire investor and entrepreneur, showed his confidence in Netflix, Inc. (NASDAQ:NFLX), as he conducted an interview with Julia Boorstin reported on CNBC. According to Cuban, he bets on and invests in Netflix, Inc. (NASDAQ:NFLX), not because of its better position, but because Netflix knows exactly how to aggregate its content. He also mentioned Walt Disney Co (NYSE:DIS) and CBS Corporation (NYSE:CBS) in particular, as being in “great shape.”

Netflix Inc logo (NFLX)

“Netflix knows how to aggregate content and now is evolving in the business of low-cost delivery of high-value content, and I don’t think there’s going to be a lot of room for competitors to them,” Cuban said.

At present, the media industry is booming with video-streaming options and the key to success for Netflix, Inc. (NASDAQ:NFLX) is definitely its content. It knows exactly how to create and offer programs to its customers and how to manage its content effectively, incurring less cost and getting high-value content out of it, which leaves very little room for its competitors. Until recently, bandwidth was a big problem, both for the content creators and content watchers, but today bandwidth is not a problem anymore as it is plentiful and quite inexpensive.

“I think net neutrality is the dumbest stuff ever. Really the base of net neutrality is not a technical argument, it’s not a business argument, it’s purely simply demonization of a couple of big companies,” Cuban said.

To protect Netflix, Inc. (NASDAQ:NFLX)’s future, the billionaire investor is totally against net neutrality, saying it’s a non-technical and non-business argument. In brief about ‘Net Neutrality’, it is the principle that the ISPs and governments should treat all data on the internet equally, without discriminating or charging differentially by user, content, site, platform, application and type of attached equipment or mode of communication. According to Cuban, if such rules are implemented as proposed, we should see a number of lawsuits.

In a video streaming business, content is the deciding factor and Netflix, Inc. (NASDAQ:NFLX) knows how to aggregate content for its customers. Netflix, Inc. has recently entered into Cuba to expand its business market. It may have a diversified audience, having different people with different cultures, but also has an ability to offer the relevant content to the right audience in each market based on their demography and cultural values which could help in increasing its customer base and dominating the market.

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