There have been numerous published reports saying that Amazon.com is planning a stand-alone, subscription-based video streaming service that would compete directly with Netflix.
Amazon currently has a video streaming service, but it is part of the company’s $79 Prime service.
Interestingly, Netflix seems to enjoying a rebound from last year’s troubles, when a price increase and an aborted effort to separate its DVD and video streaming business resulted in consumer dissatisfaction and widespread subscriber defections.
The New York Times this morning reports that Netflix enjoyed a 47 percent increase in revenue for the fourth quarter, though profit was down 14 percent - in part because the company spent more to get new subscribers. CEO Reed Hastings said that he was “encouraged” by the number of people signing up for video streaming, which is where he sees the business going in the long-term.
Amazon currently has a video streaming service, but it is part of the company’s $79 Prime service.
Interestingly, Netflix seems to enjoying a rebound from last year’s troubles, when a price increase and an aborted effort to separate its DVD and video streaming business resulted in consumer dissatisfaction and widespread subscriber defections.
The New York Times this morning reports that Netflix enjoyed a 47 percent increase in revenue for the fourth quarter, though profit was down 14 percent - in part because the company spent more to get new subscribers. CEO Reed Hastings said that he was “encouraged” by the number of people signing up for video streaming, which is where he sees the business going in the long-term.
- KC's View:
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This is worth paying attention to, if only because it illustrates how fast these businesses are changing, and how intense the competition is likely to become. The move from VHS tapes and DVDs available via Blockbuster to DVDs available via Netflix and Redbox to movies and TV shows streamed and downloaded via the Internet has not taken all that long.
For anyone selling anything to consumers to think that this kind of speed and these kinds of trends won’t affect them is, IMHO, delusional.
