Amazon to Take on Netflix — New York Post (AMZN, NFLX)
Amazon.com (NASDAQ: AMZN) is reportedly considering creating a stand-alone subscription streaming video service to compete directly with Netflix Inc. (NASDAQ: NFLX). Amazon’s current streaming service is including with a $79 annual subscription to the company’s Amazon Prime service. The New…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Amazon.com (NASDAQ: AMZN) is reportedly considering creating a stand-alone subscription streaming video service to compete directly with Netflix Inc. (NASDAQ: NFLX). Amazon’s current streaming service is including with a $79 annual subscription to the company’s Amazon Prime service.
The New York Post cites sources who claim that movie and TV producers don’t like being the loss-leader for Amazon’s soup-to-nuts retail sales. The content providers would much rather see a video-on-demand type program where viewers are charged for every movie or TV show they watch. The “all-you-can-eat” subscription model, in the studios’ eyes, leaves money on the table that they believe should be theirs.
Amazon Prime currently has about 7-8 million subscribers to Netflix’s estimated 20 million. That could change if Amazon is able to persuade the content industry to stick with the subscription model.
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
