Please ensure Javascript is enabled for purposes of website accessibility

The 1 Reason Amazon Should Buy Netflix

By Jeremy Phillips – Updated Apr 6, 2017 at 12:39PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Netflix combined with IMBD.com could serve all your Web movie buying, renting, and researching needs.

Every few months, a Netflix (Nasdaq: NFLX) buyout rumor is passed around the Web. The potential buyers range from Microsoft (Nasdaq: MSFT) to Amazon.com (Nasdaq: AMZN), but to date there have been exactly zero Netflix buyouts. This is not one of those rumors, but it is something to consider.

If you research movies online, there's a huge chance you've encountered this Amazon property. It was an early (1998) acquisition for Amazon. More people visit it than Netflix.com and it is generally the first result when you search for a movie using Google. Of course, I'm talking about the Internet Movie Database, or IMDB.com as most of us know it. Check out its unique visitors compared to Netflix in the chart below:


Source: Compete.com.

If Amazon were to buy Netflix, it would overnight double the movie-interested Web visitors that could become Netflix subscribers. Minor changes to the IMDB movie page interface would support that.

Movies and outcomes
This would add to the potential revenue-generating outcomes when a visitor accesses an IMDB page, which would help them fend off Apple (Nasdaq: AAPL) if it ever gets serious about Apple TV. By bolstering IMDB's position as the only place on the Web to research, buy, and (with a Netflix acquisition) rent movies and TV shows, they would give Web visitors zero reason to go elsewhere.

For more, learn why real Fools ignore buyout rumors.

Jeremy Phillips owns no stocks mentioned in this article. Microsoft is a Motley Fool Inside Value recommendation. Apple, Amazon.com, and Netflix are Motley Fool Stock Advisor choices. Motley Fool Options has recommended a diagonal call position on Microsoft. Try any of our Foolish newsletters today, free for 30 days. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Netflix, Inc. Stock Quote
Netflix, Inc.
NFLX
$226.41 (-4.49%) $-10.64
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$113.78 (-3.01%) $-3.53
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$237.92 (-1.27%) $-3.06
Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.