Ultra high-definition, or “4K,” television is now a thing in a growing number of households. Researcher Strategy Analytics says demand is already strong enough to support a 4K screen in one out of every eight North American homes by the end of this year. PC makers may be next to catch the wave, if Netflix (NASDAQ: NFLX) has anything to say about it.
According to an informative, though somewhat technical, post at ExtremeTech, most current PCs either don’t have the right combination of current technology or fail to properly comply with Digital Rights Management (DRM) requirements to allow 4K playback of Netflix content, including the new season of Gilmore Girls.
Don’t expect that to last long. PC makers are already having enough trouble keeping pace in a world overrun by smartphones, tablets, and gaming consoles. The inability to use a new laptop or desktop to watch 4K video would give younger buyers one more reason to forego purchasing one.
In the meantime, businesses seem to be propping up the market just fine here in the U.S. Both Dell and Lenovo enjoyed double-digit growth in domestic shipments while also expanding market share. Adding 4K to newer machines isn’t likely to push those totals higher. Apple, on the other hand, could use the help. Third-quarter shipments fell 13.2%, resulting in a 2 percentage point decline in its share of the U.S. market.
And what of Netflix investors? Should they be concerned? Not really. Netflix isn’t a TV-specific distribution system. Recognizing this, engineers at Netflix recently copied some rivals by adding the ability for mobile viewers to download programming and watch it when offline, including on smartphones and tablets that may already be optimized for 4K.
We can debate whether that actually matters. What’s important is that Netflix is already one of the world’s most popular programming platforms. Optimizing their systems to deliver programming in the intended format is the least PC makers can do — especially if they want to keep selling product.
10 stocks we like better than Netflix
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now… and Netflix wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of Nov. 7, 2016
Tim Beyers owns shares of Apple and Netflix.
{loadposition user99}