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    7 Reasons Why Netflix Will Soundly Beat Amazon in Online Video

    Fri, 02/25/2011 - 10:12 EDT - Seeking Alpha
    • AMZN
    • Kevin Berk
    • NFLX
    • SIRI

    Kevin Berk submits: Amazon (AMZN) finally threw down the gauntlet in the video subscription war. It is now offering over 5,000 movies and TV shows as part of a paid subscription to Amazon Prime. Amazon has iterated its online video service (from Unbox to AVOD to the Prime bundle) and seems to be committed to the space. Its commitment likely stems from a logical fear that the business of selling physical discs is declining faster than Amazon is gaining market share in video.Nonetheless, while Amazon has the capability and some of the motivation to compete with Netflix (NFLX), it may not have the financial will or the strategic necessity. Amazon is a very complex business with lots of moving parts and many areas of rapid growth. It doesn't need its online video subscription business to succeed for Amazon as a whole to succeed.The same cannot be said about Netflix. It willComplete Story »

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