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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wow really that carzy
I read the news of the Netflix price hike and immediately spitcanned my service. Its stock price was over $300 and is now $124.
Anything but the name qwikster **BRAAAHHHH**!
No, this theory makes no sense. Netflix has seen the future and it is streaming. Hence the DVD side gets the crappy name because some day it will be sold off or no longer exist. Netflix is undoubtedly in the streaming business for the long haul.
I find it really odd that so many people (maybe Netflix included) think that Netflix is wanting their dvd side to fail to focus on streaming when currently there are a ton of titles, including big Hollywood movies like the Dark Knight, that are NOT available for streaming. And their streaming deal with (I believe) Stars is not being renewed which means even more films will not be available for streaming. Personally I don't think their choices of movies for streaming is very good at all; especially since Criterion Collection films aren't available. But that's just me I guess.
I just want to watch good movies, I don't care what they do as long as I can watch my sh**
Yes please Amazon buy up Netflix's streaming business! It would be great if Amazon could add more movies / TV episodes to Prime.
I think it would be a great move for netflix. Might get back some of those customers they lost with the big price hike-ups. Crossing my fingers.
i wish they hurry and make some final deals and stop thinking of new ones