The video entertainment offerings for two of the biggest names in the business are going to get even better. In this clip from "The M&A Show" on Motley Fool Live, recorded on March 18, Fool.com contributors Travis Hoium and Jason Hall discuss plans by Netflix (NFLX 1.30%) and Amazon (AMZN 2.85%) to add gaming to their platforms.
Travis Hoium: I think that's another difference in the business models there. Is at least today, we have not seen Netflix expand beyond the single pricing strategy. When we talk about where do sports fit in, Netflix potentially has the ability to write a really big check to a sports league. But how does that fit into their service? Does it just sit next to Squid Game?
Even from an operating system standpoint, they're just not really set up the way that an Apple TV is, the way that Amazon stick is. Roku would be another player in that that could just add sports in on the side and let it live on its own and maybe even monetize it on its own. That's another thing to bring into the fold.
Jason Hall: We haven't even touched Travis. We haven't even touched on the other big part of this video entertainment that's plugged right in with streaming and that's gaming.
Hoium: Yeah, I mean, Twitch is the only piece that we have. But there you go. Amazon is pulling these things together in a way that others aren't. Yeah. Are these things all going to converge? Netflix's starting to try.
Hall: The lines are being blurred. I think that's already happening and I do think Netflix has already talked about developing a platform for gaming. That's a recurring revenue model. I absolutely think that's the case. I think that fits within the Netflix model pretty well. I think less so for the ones that are more pure-play are the ones that also do the live stuff.
I think it is the least likely to do the live stuff before it invests in gaming where there is a tremendous amount of crossover between its existing customer base that makes sense and it's easier to build on its platform. That's not about behavior change. Bringing live sports would be. I think it and Amazon are going to be pretty competitive in bringing gaming to be part of their growth.
