Will Amazon Really Doom Netflix?
Another day, another reason investors are selling off Netflix. Yesterday, Amazon.com announced that it has reached a deal to license content from Epix for its Instant Stream service. While Netflix will retain Epix programming, which includes titles such as The Hunger Games and Marvel films such as Thor, that content will no longer be exclusive.
The obvious concern to investors is that Netflix is losing its "moat." Amazon is making a bid for more content in part to create demand for its Prime service, which generates recurring yearly revenue, but also to increase content available for its Kindle Fire tablet, which is geared toward consumers as a consumption device. Yet beyond Netflix, more rivals could be sniffing around for services similar to what it's offering.
As Senior Technology Analyst Eric Bleeker says in the following video, while investors should bemoan the entry of deep-pocketed rivals onto Netflix's turf, it still has built-in advantages such as deep integration with many Internet-connected devices such as televisions. All the action in the space just shows why Netflix is now a $3 billion company instead of the $16 billion "category killer" it was early last year. To see Eric's full thoughts, watch the following video.
The article Will Amazon Really Doom Netflix? originally appeared on Fool.com.Eric Bleeker has no positions in the stocks mentioned above. The Motley Fool owns shares of Amazon.com and Netflix. Motley Fool newsletter services recommend Amazon.com and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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