Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Amazon to Netflix: Your Move

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

The folks at (NASDAQ: AMZN  ) seem absolutely bent on fostering the ideas and opinions of their users.

Just last week, for example, the site unveiled Kindle Worlds to enable aspiring authors to test their skills writing fan fiction.

Then, on Wednesday, Amazon took a direct shot at video streaming powerhouse Netflix (NASDAQ: NFLX  ) by announcing it will proceed with the production of five new original series. Unsurprisingly, the five were chosen based on votes from Amazon viewers among 14 possible pilot episodes offered by the company in April.

Amazon's press release -- the headline of which starts with the words "Customers have spoken" -- begins by briefly introducing two adult comedies, Alpha House and Betas, as well as three new children's shows: Annebots, Creative Galaxy, and Tumbleaf. All five series will premier on Amazon's Prime Instant Video service between now and early 2014.

Been there, done that
Netflix, for its part, is already well experienced with its own original programming after releasing five unique series of its own so far, including Lilyhammer, House of Cards, Bad Samaritans, Hemlock Grove, and the latest season of Arrested Development, which launched just last week

What's more, Netflix is also working on four other series to be released sometime between this July and late 2014, notably including a new original children's show based on this summer's upcoming movie Turbo from DreamWorks. With this in mind, and noting Netflix's vast array of dedicated children's content has served to make the service incredibly appealing to families, you can bet Amazon's huge push into kid's programming was no coincidence. 

Better late than never?
Similar to the tardy introduction of its new universal login functionality, Amazon is certainly working hard to play catch-up with the critically acclaimed content offered by its more popular competitor in Netflix. Even so, that's no reason to count Amazon out of the streaming video race, especially considering viewers played an integral part in deciding which pilots would become full-fledged series.

As a result, Amazon Prime users should possess at least some level of emotional attachment to their shows of choice, and any positive word-of-mouth will serve as a great way to push potential customers off the fence.

Who wins?
In the end, though, I sincerely doubt Amazon's push into the space will manage to put a dent in Netflix's loyal subscriber base. After all, despite the increasingly intense competition, Netflix still managed to boost its number of streaming members by more than 3 million last quarter alone, bringing the total to more than 36.3 million people.

Still, investors shouldn't lose sight of the bigger picture. Even if consumers combine the monthly cost of both services, it's still only a fraction of the price they'd pay for even a basic cable subscription. As I've written before, while this does help to explain why traditional network TV companies are growing increasingly desperate, it also goes to show there's no reason Amazon Prime and Netflix shouldn't be able to peacefully coexist.

What's your next move?
How about checking out The Motley Fool's premium report on Netflix? Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so click here and claim your copy today.

Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 01, 2013, at 3:23 PM, ckgod wrote:

    Amazon aka the copycat followed Netflix from DVD by mail to free streaming to subscrition streaming to original content. One thing they could not copy is what Netflix will do next month or next year... lol. I don't know how much money Amazon have wasted but they could have just bought Netflix when its stock price was low.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2463460, ~/Articles/ArticleHandler.aspx, 9/29/2016 8:11:27 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
AMZN $829.05 Up +0.33 +0.04% CAPS Rating: ****
NFLX $96.67 Down -0.81 -0.83%
Netflix CAPS Rating: ***
DWA $40.97 Down +0.00 +0.00%
DreamWorks Animati… CAPS Rating: ***