In this video, Austin Smith highlights what he sees as Amazon.com's biggest advantage over Netflix: data on customer searches and preferences. While both companies mine their databases to better offer content to their customers, Austin points out that Amazon has the larger, more complete database. Amazon is also improving its operations, particularly its distribution operations, and is narrowing the advantage Netflix has in that regard. In Austin's opinion, momentum and data mining are going in Amazon's favor.

Austin Smith has no position in any stocks mentioned. Jeremy Phillips owns shares of Amazon.com. The Motley Fool recommends and owns shares of Amazon.com and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.