How Netflix’s woes are good for Amazon's ambitious video plans |
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Videos and Amazon Prime are an important part of Jeff Bezos' strategy to take on Apple's might iPad with Amazon's Kindle Fire tablet.
Netflix’s big problems with keeping subscribers and staying out of the red come at an opportune time for Amazon, which has its own ambitious plans for its Amazon Prime video subscription service.
Amazon has been beefing its movie offerings through its Prime subscription service. In July Amazon announced a licensing agreement with CBS Corp. And just this week, Amazon added more PBS content to Prime.
With the PBS deal, Amazon says Prime will offer 12,000 instant videos by the end of this year, more than doubling the Prime instant video title count since its launch.
And Amazon Prime also is an important part of the Kindle Fire tablet strategy. Amazon Prime comes free for a month with the purchase of a Kindle Fire, and Amazon is hoping to convert Prime test drivers into permanent customers with increased video content offerings on the tablet.
Netflix’s missteps could help drive customers to Amazon, according to Forbes, which says Netflix is paying for some miscalculations including a decision to raise prices for the Netflix streaming service and DVD-by-mail service. Netflix also created confusion in the marketplace by deciding to split its DVD business in to a separate service named Qwikster, only to backtrack on that decision, according to Forbes.
In February, Amazon launched its video streaming service to take on Netflix. And since then, Amazon has rapidly expanded.
Netflix charges $7.99 per month -- or $95 per year -- for its streaming video service.
There have been off-and-on reports that Amazon.com might be interested in buying Netflix. But those reports have never been substantiated.
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