NFLX has what KO & PEP have, brand loyalty. All my friends who use NFLX swear by it. so any competitor has such a huge hurdle to climb it really won't affect NFLX. I liken it to RC Cola trying to take on KO & PEP
SHLD you are right, brick and mortar is no place to be, way too much competition and margins are rediculously small.
AMZN I think you are way off base with. they compete with every retailers own online platform yes. but its rare to find anything at an online retailer that you can't find cheaper on AMZN. AMZN is the WMT of the online world, you can't compete with their pricing power.
Of course all of the above is simply My 2 cents!
Happy Trading all!