Amazon's Kidding Around With Netflix

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.

Netflix (NASDAQ: NFLX  ) used to be able to brag about how so much of the content available on rival streaming smorgasbords was redundant to its wider catalog, but (NASDAQ: AMZN  ) is doing a pretty good job of lining up content that video fans can't find on Netflix.

Amazon announced a multiyear deal with Viacom (NASDAQ: VIA  ) yesterday that will bring SpongeBob, Dora the Explorer, and several other beloved properties that were removed from Netflix's streaming library late last month.

In short, there are plenty of things that Amazon's Prime Instant Video subscribers can stream that Netflix users no longer can.

  • The new Viacom deal covers 3,900 episodes across 250 seasons from Nick Jr., Nickelodeon, MTV, and Comedy Central shows.
  • Later this year, Amazon will begin offering full seasons for five pilots that its users selected last month.
  • Downton Abbey is a pretty big deal, and Netflix will no longer have it available for streaming starting next month. Amazon will have the popular BBC series.

There are plenty of gems in the MTV and Comedy Central vaults, but the real prizes here will be the kids programming.

Netflix is so fond of its children's content that it has a specific interface for kids to use that only accesses its kid-friendly catalog entries. Fans of Rugrats, The Backyardigans, and Blue's Clues may beg to differ now that those shows are only available on Amazon through this expanded Viacom deal.

This doesn't mean that Netflix investors need to worry. It's been preparing for last month's departure of Nick and Nick Jr. programming. Back in February it struck a deal with DreamWorks Animation to create the first Netflix original series for children. Turbo: F.A.S.T. will arrive in December, and it will probably be more magnetic than all three of Amazon's kid pilots combined. The show is based on the Turbo movie -- about a power-blessed racing snail -- that hits theaters next month.

Netflix also inked an even bigger deal with Disney in December, latching on to the world's most popular family entertainment brand.

The full breadth of the content through the Disney and DreamWorks Animation deals won't be ushered in right away, but it shows that Netflix is making a calculated bet on children. Netflix knew what it was giving up when it let Viacom walk last month.

In the end, the lack of redundancy will only increase the size of the addressable market. You will find more and more homes with both Netflix and Amazon Prime Instant, just as plenty of cable customers subscribe to more than one premium movie channel.

Kids may not have to choose between one platform or the other when both are so cheap compared to traditional cable and satellite television-provider ransoms.

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 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.

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

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 08, 2013, at 9:50 AM, HighGrowth wrote:

    You are the first I have read who actually realizes that multiple media subscription services may be complimentary. At $8 per month a pop it has never been an "Amazon vs. Netflix" issue. I would subscribe to both if they each offer good programming.

    With Netflix I have scrapped my Sattellite subscription of $80 per month in favor of an $8 Netflix subscription. Much room in the budget for more programming, if Amazon ever makes it to Canada...

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: 2473205, ~/Articles/ArticleHandler.aspx, 9/30/2016 10:28:05 AM

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 18,262.17 118.72 0.65%
S&P 500 2,161.16 10.03 0.47%
NASD 5,288.13 18.97 0.36%

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

9/30/2016 10:12 AM
AMZN $836.15 Up +7.10 +0.86% CAPS Rating: ****
NFLX $97.28 Up +0.61 +0.63%
Netflix CAPS Rating: ***
VIA $42.44 Down -0.08 -0.19%
Viacom CAPS Rating: ***