Why Amazon's Latest Move Spells Big Trouble for Netflix

The following video is from Friday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Ron Gross, James Early, and Joe Magyer. In this segment, the guys talk about some major headaches for Netflix (NAS: NFLX) this week. On Monday, they took major action to defend against a hostile corporate takeover, and now, Amazon (NAS: AMZN) has announced the launch of their Prime service, which is obviously tailored to bite directly into Netflix's marketshare. The move comes from an incredibly powerful competitor.

The precipitous drop in Netflix shares since the summer of 2011 has caused many shareholders to lose hope. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why we've released a brand-new premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. We're also offering a full year of updates as key news hits, so make sure to click here and claim a copy today.

The article Why Amazon's Latest Move Spells Big Trouble for Netflix originally appeared on Fool.com.

Chris Hill owns shares of Amazon.com and Microsoft. Joe Magyer owns shares of Amazon.com. The Motley Fool owns shares of Amazon.com, Costco Wholesale, Microsoft, and Netflix. Motley Fool newsletter services recommend Amazon.com, Costco Wholesale, Microsoft, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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