The lights are on
Wedbush analyst Michael Pachter is at it again with his latest theory. He predicts that the reason Netflix split its DVD rental and digital streaming business is so that it would be easier to sell the steaming business to Amazon.“Upon reflection, it appears to us that the driver for the separation of Netflix into two businesses—Netflix.com (for streaming) and Qwikster.com (for DVD rentals) —was to position the streaming business for sale to Amazon.com,” reads an excerpt from Pachter's research on Forbes. “In our view, Amazon has always wanted to be in the streaming business, and has been constrained from buying Netflix due to tax considerations. The split up of Netflix’s business addresses the state sales tax issues raised for Amazon in having a ‘nexus.’ If Amazon were to acquire only Netflix’s streaming business, it could triple the size of its content library, and gain traction as an industry leader. Netflix streaming has current content deals that provide it with access to movie content during the premium cable TV window, and Amazon has the financial resources to secure additional streaming rights, including Starz content. Netflix’s financial flexibility is quite limited, while Amazon’s is virtually unlimited.”Pachter also details tax benefits, competition elimination, and more. This theory makes a lot of sense, and blending Netflix's streaming deals with Amazon's piles of cash and business smarts could mean a lot more content for subscribers. Of course, there's no evidence of an impending deal. But it sounds like it would make a lot of sense.
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I couldn't care less, Netflix is going downhill...fast.
So...would netflix still retain rights or would it be a total sell? Because with most people canceling dvd subcriptions a total sell would probably lead to bankruptcy for " quickster". I dont think they would do that, but its an interesting theory to consider. It also would make the name change make a little more sense.
It's funny that the only person I've heard who thinks that Netflix is looking to sell their streaming service is this hack, rather than their less profitable mail service. Idiot.
this could get interesting.
I love Amazon. I could see this happening as amazon is the much cooler, internet version of walmart.
That's retarded. Notice that the cost of DVD rental service is higher. Netflix split the services to push people towards doing streaming only so that they could eventually phase out physical rentals.
Realize that Pachter is an analyst, not a psychic or a reporter. If he stated the obvious all the time he would get crap for that.
His job is to look at things and make educated guesses, sure those guesses can sometimes make me scratch my head, but I don't really know enough about what his employer expects of him to comment that he is doing a bad job. He is still employed after all.
As far as this comment goes, it does make sense. Of course it also made sense to most people that the Wii would be better off as an HD console, Nintendo disagreed and financially proved us all wrong.