The Streaming Wars Are Getting Wild

Amazon.com (NASDAQ: AMZN  ) just inked a huge deal with Viacom (NASDAQ: VIA  ) on a set of popular streaming content. One thing we know for sure is that Amazon paid more than Netflix (NASDAQ: NFLX  ) thought the content was worth, as Netflix passed on renewing its deal for these shows earlier this year.

The two companies are taking different tacks in their battle for streaming subscribers. Netflix is getting more choosy about the content it licenses so that it can focus spending on funding original shows. Meanwhile, Amazon is taking more of a shotgun approach -- buying everything that isn't nailed down.

In the following video, Fool contributor Demitrios Kalogeropoulos argues that Amazon's splashy spending is bad for both companies, as profits will be crimped by rising content costs. But content owners such as Viacom, Disney, and others stand to benefit the most from this expensive fight.

The television landscape is changing quickly, with new entrants like Netflix and Amazon.com disrupting traditional networks. The Motley Fool's new free report "Who Will Own the Future of Television?" details the risks and opportunities in TV. Click here to read the full report!


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  • Report this Comment On June 10, 2013, at 3:33 AM, AceInMySleeve wrote:

    I'd say that Amazon's only chance is to create a service that's not just a shittier version of Netflix, via different types of content. And if they do that, then it isn't even particularly competitive so much as complementary.

    Still don't quite grasp what gives them the nuts to do all this for absolutely no incremental revenue, but it's not my money.

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