Netflix and Amazon Aim to Cancel Traditional TV

Netflix (NASDAQ: NFLX  ) and Amazon.com (NASDAQ: AMZN  ) are hoping to rewrite the rules on television by replacing the inefficient broadcast model that sends so many new TV shows to the dustbin after just one season.

Each company has its own approach. Amazon is asking its viewers to decide which pilots get made into full series. And Netflix has its data-driven strategy, letting the algorithms decide. In the following video, Fool contributor Demitrios Kalogeropoulos discusses why both companies think they have the leg up over networks such as Comcast (NASDAQ: CMCSA  ) NBC and Disney's (NYSE: DIS  ) ABC.

Everyone knows Amazon is the king of the retail world right now, but at its sky-high valuation, most investors are worried it's the company's share price that will get knocked down instead of its competitors'. The Motley Fool's premium report will tell you what's driving the company's growth, and fill you in on reasons to buy and reasons to sell Amazon. The report also has you covered with a full year of free analyst updates to keep you informed as the company's story changes, so click here now to read more.


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  • Report this Comment On May 18, 2013, at 10:22 PM, lanceim59 wrote:

    Everyone should be investing in NFLX. This company is really cheap. Google may hit $1000/share first, but Netflix won't be too far behind! The 2-Star CAPS rating is just an illusion. This stock should have a full 5-Star rating! I will be adding another 100 shares ASAP before they really take off!

  • Report this Comment On May 19, 2013, at 1:12 AM, Seesaw21 wrote:

    I would go with Microsoft or google as they are more diversified.

    Stock market has found 2 stocks to have fun with tesla and netflix.

    Pump the stock up squeeze shorts or actually keep pumping stock and one day make stock price crash.

    They say sell in may I just fear manipulation and crash and burn.

    Tesla cannot compete with Japanese and Korean too expensive cars.

    Netflix cannot compete with Microsoft or google.

    Money matters seriously.

    Acquisition rumors of netflix at current prices are really irrational. Google or Microsoft can pay such money to content providers and come way ahead of netflix studios would sell to the highest bidder.

    About algorithms and suggestions for movie recommendation and what to watch they are not the toughest for the technical competence of google and Microsoft engineers. Google has YouTube Microsoft has Xbox which is stated to be cable integrated

    Hulu and amazon are overrated real competition is YouTube and Microsoft.

    New Xbox is coming 21 st may Viacom deal with netflix is expiring wed this coming week is going to be interesting.

    Real problem is netflix does not have any contracts people can jump to cheaper options anytime. Growth is going to stagnate due to other cheaper options

  • Report this Comment On May 19, 2013, at 1:38 AM, tristinstone wrote:

    I dropped Netflix 3 years ago, and I dont plan on ever using them again. I seriously doubt anyone can ever match satilite or cable? I have Direct TV and I wouldnt give it up for any on-line rerun bee-ess! Plus until Netflix can show me live nfl Sunday ticket games, they dont stand a chance against millions of loyal customers!

  • Report this Comment On May 19, 2013, at 3:07 AM, Seesaw21 wrote:

    Regarding live YouTube just added live streaming to 1000's of channels so imagine potential for people to stream live events.

    How about if instead of buying a subscription you just buy when you want to watch and what you want to watch.

    This from worldwide netflix is still trying to establish itself internationally and already cable providers are rolling out competitive products.

    It is a hard to digest fact for people emotionally invested in the stock. 30 million people paying $7.99 see netflix stock going up they invest 1000$ or 500$ each stock is up.

    But when pullback happens it is really massive.

    Stock can still be pushed up by emotional investors or manipulative funds. Bottom line is netflix viability long term.

    Watching shows a couple of years old on netflix is going to be really going to be a thing of the past soon when prices for consumers go down due to increasing competition and cable providers bring shows faster to the public at similar prices.

    It took 100 million $ for netflix to produce house of cards and people could just sign up watch the whole series in a week and cancel.

    So unless netflix keeps investing 100's of millions of $'s every month it would not work.

    Also netflix does not own the show. Comparing netflix to hbo is comedic they own the shows and audiences keep subscribing to hbo as they await the next episode and cannot watch the whole season in a couple of days.yes people would stream 1 billion hours but how many after they are done with no contracts , no episodes to keep waiting for.

    It is a hard unviable thing.

    The best thing about netflix is its price which would be difficult to maintain once content costs go up, they lose subscribers to rivals.

    Barriers to entry are none hulu, amazon, YouTube , Microsoft are the big competitors which it needs to watch out for

  • Report this Comment On May 19, 2013, at 8:53 AM, Burstedbladder wrote:

    Cable and Satellite companies will be forced to lower their prices as people begin to leave them like the black plague.

    Netflix is the way to go, and I do not miss my Dish Network one bit.

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