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.

Fool contributor Demitrios Kalogeropoulos owns shares of Walt Disney and Netflix. Erin Miller owns shares of Walt Disney. The Motley Fool recommends Amazon.com, Netflix, and Walt Disney and owns shares of Amazon.com, Netflix, and Walt Disney. 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.