Amazon just came out with the unlimited video streaming for its prime members. This marks the end of Netflix sole dominance in this space.
I am expecting margins to shrink tremendously as Studios have increasing suppliers’ power while Netflix faces stiff competition from Amazon, Verizon, Comcast and more.
While the pathetic 5000 videos may be so much lesser than Netflix’s 20000 videos, Amazon has 2011 videos lined up for sale already.
Amazon platform is good but the video quality may not be on par with netflix. However, it is clear that Amazon prime is far more superior due to its free shipping for its members. This compensates for the lesser videos available. Furthermore, one can buy Amazon latest release earlier than Netflix.
With net neutrality facing troubles, Netflix will face higher cost in the future, and I doubt subscription rate will go up fast.
This is the end of netflix in my opinion. My target is $140.
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