Original email I was responding to:
Could Amazon buy Netflix?- MSN Money
I think this is highly unlikely. Amazon’s service on its own is just as good as NetFlix minus the larger library. The biggest thing driving NetFlix’s larger streaming library is the Starz content (I am sure you have seen their logo when you stream NetFlix at least 50% of the time). That contract is up for renewal in February. I can only imagine that Starz feels their value to NetFlix and will drive up the price, which they will of course make back by charging their users. Could Amazon outbid and therefore get the bigger library? Seems more likely and much cheaper than buy NetFlix outright. Amazon swings a very big stick, and they would probably prefer to negotiate their own deals with content providers instead of being subject to deals NetFlix has been making with their much smaller stick. Amazon can also offer content providers click to buy options on DVDs that Amazon already sells and the aforementioned content providers get a MUCH bigger profit cut from. Remember the 30 day delay on NetFlix RedBox access to films because they wanted to increase sales of DVDs in the store? Picture Amazon offering a direct sale of a DVD after someone finishes a movie, they just streamed it, liked it, now here it is a a discounted price.
I might be an Apple fan boy, but don’t think for a second that there is anyone who is going to enter the tablet market FOR AWHILE that will be able to compete with the iPad juggernaut. Others have tried and failed. The problem they are having is getting below Apples price point of $500. Even if you release a touch device with a 10″ screen it is hard to get below the cost to manufacture and still make a decent margin. Price of Blackberry Playbook $299, Price of HP Touchpad (now discontinued) $350-400, let not even mention the Samsung tablet which sales are so shitty for they have been reporting false numbers. They did do a fire sale on Touchpads for $99 (closest comparable device to the iPad experience as reviewed by many experts). HP sold SO many that they actually had to manufacture more to sell at this discounted price. Unconfirmed, but the speculated cost to manufacture Touchpads was around $300. Confirmed, at $99 they are selling them at a loss. Point being why would Amazon who has a GREAT business enter this market where other Companies with much better capabilities for manufacturing such a device have failed?
Amazon has a GREAT business, they are doing well as an internet reseller. The Kindle itself is a VERY different device than a tablet computer akin to the iPad. The Kindle has dropped significantly in price from when it originally premiered. Even when it first came out Amazon took a hit to offer FREE always on Internet to anyone who purchased it. In contrast it cost $30 a month to AT&T or nor Vorizon to anyone who wants 3G service for their iPad. They swung their stick & brokered a deal with Sprint, probably a very good one, to sell this as a feature. The Kindle itself it just a window to Amazon to buy content for the device from them. So much so that I was thinking that by Christmas the Kindle would be given away for FREE to anyone who is an “Amazon Prime” member. Amazon Prime = $240 (($20*12) I think) a year and you get FREE shipping for anything you order form them, AND complete access to their current video streaming library (not as big as NetFlix). Amazon has already optimized their service for the iOS (iPads, iPhones, iPods). The smart way that they did it means that that service also works on any of the other lesser selling tablets and just plain ordinary desktop web browsers.
The only thing that NetFlix has to offer them is being on the Wii, PS3, XBox, TiVo, Boxee, AppleTV. Thing is from my understanding NetFlix is creating their own Apps for those platforms. So if your Wii App is shittier than your TiVo app you only have NetFlix to blame. A lot of these Apps are shitty, and why couldn’t Amazon just develop their own that aren’t’. Maybe NetFlix needed to put deals in place to get on these platforms in the first place? Read the bigger stick thing I used twice already. Amazon even SELLS these delivery system products! NetFlex does not, and therefor has no leverage.
I found this one fun, although I didn’t get to read the original NetFlix email to their customers.
What NetFlix should have said.
Not sure if I finished this, or went back an fact checked or content checked or anything. Took the time to tap it all out so if felt like a shame not to put is somewhere. I didn’t even actually send this email to Dad because he would get pissed at me for acting like a know it all or some shit. A lot of it is good stuff & true stuff. I post as is and fuck it you know because its hjays