06-02-2012, 04:19 PM
Netflix can't be said to be competing with iTunes. iTunes is more like a supplement to your Netflix subscription. For example, Netflix has the first 6 episodes of Walking Dead available for streaming. iTunes has them all, but at $2.99 per episode, Netflix will pay for itself just from streaming the first 6 episodes of this one show.
So I don't see anyone canceling Netflix in order to use iTunes. They're different business models and they're actually compatible with each other.
Amazon Prime is a far more direct competitor but Prime is $4/month and also gives you free two-day shipping and other stuff and it shows -- Prime almost never has anything good available. Their available money to spend on licenses is obviously a lot less than Netflix. While Amazon could throw money into it to acquire licenses, it would be running Prime in the red (unless they start charging more).
The real competition for Netflix would be something like HBO or Showtime, if you were able to get them streaming a la carte, which so far they haven't seemed interested in. Really that's what Netflix is: a giant HBO type channel that streams a wide variety of shows and occasionally has new, high end movies available (but generally doesn't have the one you wanted to watch).
So iTunes simply is not competing with Netflix. Apple doesn't seem the type to offer a monthly streaming package. Amazon, including Prime and LoveFilm, is competing with iTunes far more than they're competing with Netflix. Hulu might be a better competitor but they seem uninterested in movies, focusing entirely on TV shows.
I don't think Netflix has any serious competition in the "1 monthly fee for a la carte shows" arena.
So I don't see anyone canceling Netflix in order to use iTunes. They're different business models and they're actually compatible with each other.
Amazon Prime is a far more direct competitor but Prime is $4/month and also gives you free two-day shipping and other stuff and it shows -- Prime almost never has anything good available. Their available money to spend on licenses is obviously a lot less than Netflix. While Amazon could throw money into it to acquire licenses, it would be running Prime in the red (unless they start charging more).
The real competition for Netflix would be something like HBO or Showtime, if you were able to get them streaming a la carte, which so far they haven't seemed interested in. Really that's what Netflix is: a giant HBO type channel that streams a wide variety of shows and occasionally has new, high end movies available (but generally doesn't have the one you wanted to watch).
So iTunes simply is not competing with Netflix. Apple doesn't seem the type to offer a monthly streaming package. Amazon, including Prime and LoveFilm, is competing with iTunes far more than they're competing with Netflix. Hulu might be a better competitor but they seem uninterested in movies, focusing entirely on TV shows.
I don't think Netflix has any serious competition in the "1 monthly fee for a la carte shows" arena.