Netflix (NASDAQ:NFLX) and Amazon.com (NASDAQ:AMZN) are hoping to rewrite the rules on television by replacing the inefficient broadcast model that sends so many new TV shows to the dustbin after just one season.

Each company has its own approach. Amazon is asking its viewers to decide which pilots get made into full series. And Netflix has its data-driven strategy, letting the algorithms decide. In the following video, Fool contributor Demitrios Kalogeropoulos discusses why both companies think they have the leg up over networks such as Comcast (NASDAQ:CMCSA) NBC and Disney's (NYSE:DIS) ABC.