07-25-2012, 03:16 PM
True, but I don't think they want to.
Amazon, like Apple with iTunes, just wants to sell you stuff. You give them money, here's your thing, done deal. That's the business model they want. Apple could buy Netflix but they could also buy Dollar Stores and Baskin Robbins. Point being just because they can buy something doesn't mean they ever will or have the slightest interest in doing so, especially when it's pretty far removed from their current revenue model.
Streaming video is a subscription service and, as Netflix demonstrates, an expensive service to run and potentially risky. I don't think either Apple or Amazon have an interest in this. (True, Amazon has Prime, but they've had a couple years to expand this and haven't done so. I think to them it's purely a small value add and will never be a full service. The real point of it is still 2-day shipping. They would rather sell you digital movies or rent to you as a single transaction.)
At least not so long as Netflix continues to survive. I don't think Apple or Amazon would let ala carte streaming video die because in the end it I bet it helps their tablets sell. Which does, I think, highlight my point that Netflix exists in a vacuum. If Netflix died tomorrow, there would be no streaming video offering out there that takes its place. If you cancel Netflix, I think you're easily going to pay 5x as much for similar TV time. (Granted after paying 5x as much you will own more stuff outright but how many times are you really going to watch 'Batman Begins'?)
Netflix is the only monthly subscription game in town for movies. Hulu competes on TV shows but "competes" is kind of a stretch, I think, since I think Hulu's goal is more to bring you current shows from the backing studios and not be an all-encompassing entertainment venue and archive like Netflix.
Basically what I'm trying to impression upon people is that there is no competition for Netflix right now.
If Netflix fails, it's because it's just not the right time for monthly subscription streaming video to succeed. If Netflix can't do it, neither, I think, can Apple or Amazon. So if you think this format has no future, then I'd agree with you that Netflix is a bad investment. If you think the format has a future, then Netflix is the only place to put your money for it.
Amazon, like Apple with iTunes, just wants to sell you stuff. You give them money, here's your thing, done deal. That's the business model they want. Apple could buy Netflix but they could also buy Dollar Stores and Baskin Robbins. Point being just because they can buy something doesn't mean they ever will or have the slightest interest in doing so, especially when it's pretty far removed from their current revenue model.
Streaming video is a subscription service and, as Netflix demonstrates, an expensive service to run and potentially risky. I don't think either Apple or Amazon have an interest in this. (True, Amazon has Prime, but they've had a couple years to expand this and haven't done so. I think to them it's purely a small value add and will never be a full service. The real point of it is still 2-day shipping. They would rather sell you digital movies or rent to you as a single transaction.)
At least not so long as Netflix continues to survive. I don't think Apple or Amazon would let ala carte streaming video die because in the end it I bet it helps their tablets sell. Which does, I think, highlight my point that Netflix exists in a vacuum. If Netflix died tomorrow, there would be no streaming video offering out there that takes its place. If you cancel Netflix, I think you're easily going to pay 5x as much for similar TV time. (Granted after paying 5x as much you will own more stuff outright but how many times are you really going to watch 'Batman Begins'?)
Netflix is the only monthly subscription game in town for movies. Hulu competes on TV shows but "competes" is kind of a stretch, I think, since I think Hulu's goal is more to bring you current shows from the backing studios and not be an all-encompassing entertainment venue and archive like Netflix.
Basically what I'm trying to impression upon people is that there is no competition for Netflix right now.
If Netflix fails, it's because it's just not the right time for monthly subscription streaming video to succeed. If Netflix can't do it, neither, I think, can Apple or Amazon. So if you think this format has no future, then I'd agree with you that Netflix is a bad investment. If you think the format has a future, then Netflix is the only place to put your money for it.