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 think most people are predicting they are going to sell off the DVD-side of the business, aren't they? At any rate, there is no reason they should split the two sides completely like this when the majority of their customers are subscribed to both. It's an unnecessary increase to costs. Unless they are planning a sale of course.
Can people please stop taking this guy seriously? Please?
Really? I thought Netflix was selling its streaming business to Whole Foods!
Amazon and Google are the only corporations I don't worry about trying to create monopolies. Even if they effectively have them, they always do it in a manner that makes the service easy to use and prices cheaper than anywhere else.
Kinda makes sense to me. And it would be cool cause then there would be more content which is always a plus for the user!
well this actually seems beneficial, I would love to have more movies available for streaming and I feel Amazon has the potential to make that happen, but who knows if this will ever happen.
i dont think amazon has that kind of buisness at all i think they are lying somehow to rip off netflix and steal all their money because amazon likes what they are maybe thats just my guess...hmm...yup amazon is all about shoping everything not based on dvds
As long as I don't have to go back to cable I am fine :)
With the way Netflix is, it wouldn't surprise me.
Well it could also mean they jack up the price too. If such a thing happens, as long as service isn't interrupted and the price doesn't suddenly jump, I would have no problem with it. Amazon's main office is made out of hundred dollar bills.
I don't see this happening. I think Netflix did what it did in order to focus on the streaming business, which is the future. The end.
Well, I'll be...that is about the most reasonable thing I have ever read. That would be okay with me. I like Amazon.
Oookaaayyyy.....Not really following too much, but whatevs. The split was beneficial yet unfortunate.
this is good news. Netflix has been a barren wasteland for months.
I don't really value Pachters opinions at all, but it is something interesting to think about.
I really like Netflix, but he is right when he said its financial flexibility is limited. Amazon may be able to secure many other deals Netflix wouldn't have been able to. Its interesting. There is however, the fear that Amazon would raise prices, or hurt consumers in some way, or just generally muck the greatness Netflix is today. I guess we'll just have to wait and see what happens.
I hate the fact that this guy makes a living - probably a REALLY GOOD living, too - just bullsh*tting. HOW IS THAT A JOB!?! It's not fair, man. This guy doesn't seem to have much skill at predicting anything...
It does sound like it would be of great benefit to users if such a partnership ever happened. Joke: I prefer steaming business to streaming.
That's a ridiculous rumor. The reason why Netflix spun off its DVD service, separating it from the well-known brand Netflix and putting under the hokey name Qwikster, is because they expect the DVD side to fail utterly and they don't want its implosion to ruin the Netflix brand. They see the times changing and they know that the US postal service is dying and physical media is dying and they need to end up on the right side of history. Expect to see more from Netflix on the streaming side of things, do not look for them to throw in the towel.
Would this mean more TV shows, movies, and anime? DO IT!!
while we know everyones stance mostly on pachter i'd have to say if it came to pass fine i personaly like and use amazon used to use netflix before i relocated just for the dvd rentals so since thats gone persay might as well just use 1 again if i were to use it