Netflix: Amazon Losing $1B A Year in Streaming War

[ubercake]

I have both services.

Amazon offers some decent exclusive types of instant video such as all the Star Trek series.

Only within the last three months have I begun using the Amazon video store. They compete with those services that stream new rentals pretty well.

The video library doesn't seem as vast as Netflix, but Netflix's bread and butter seems to be TV shows any more. When they lost the deal with Stars, it's been hard to find newer decent movies on Netflix.

 

[jaquith]

[citation][nom]ddpruitt[/nom]Amazon is building it's arsenal so it can nuke Netflix out of existence.Netflix know this and it knows it has forever lost the loyalty of customers like me when it decided to screw us over by doubling the fees on DVDs/BluRays[/citation]
For the record I've had a '3 Discs out at-a-time' before 'Streaming' was even around, and yep their CEO Reed Hastings is an a-hole and if it weren't for the fact that I'm not poor I would of cancelled my account which I almost did but there's no better alternative.

As it is we're mailing out our disks every 2 weeks and very often going to Redbox or using FiOS On Demand. The problem with per-day-rentals is that I've had to buy 4-6 movies from Redbox because of forgetting to return them, and with Netflix there's NO LATE FEES which is big in our busy family. Therefore because of our habits it's Netflix or FiOS 'On Demand' or simply if the movie's good I'll buy the Blu-Ray. I own a too many to count...over a thousand.

What's needed is $1.50~$1.99 per day 'On Demand' service and I'm all-in! However, for steaming rentals Amazon Prime HD is the same price ($5.99) as Verizon FiOS. Otherwise unlimited rentals using Netflix.

 

[Kami3k]

[citation][nom]rosen380[/nom]"2.1 billion over 12months, your math showed what they are making in a month verses spending in a year"I inadvertently left out the x12 in the text, but the $2.2B reflects it, so all of their servers, electricity and maintenance costs, etc have to be pretty low for it to be profitable.[/citation]

They make at least 26 billion in revenue, you ignore that they do have other options besides streaming.

No way does maintenance and electricity cost billions of dollars a year.

 

[gidgiddonihah]

I have Netflix and Amazon Prime. I rarely use Prime Videos as their library is so limited.

 

[rosen380]

I interpreted the $2.1B in "content" as their cost for the licensing of the content that they stream alone [given that this article is about streaming]. If that $2.1B is for everything, including their costs to get the DVDs and bluRays that they mail out, then that is a big difference.

If not, and they have $2.1B in licensing and $2.2B in related revenue, plus have all of the costs involved in getting the content from their servers to you, it definately seems like a money losers.

From their last financials, their annual net incomes:
2010: $161M
2011: $226M
Q1-Q3 2012: $9.3M

Looks like the wheels might have fallen off in 2012

 

[rosen380]

If they have 23M subscribers and $26B in revenue, it would mean that they average subscriber is handing them over $1000 per year -- that seems pretty doubtful.

 

[Thor]

Why not put all these boss working at McDonald for ten years at least.
So like that maybe they will know what WORK mean !

 

[jaquith]

Math:
Gross Revenues Streaming only:
$7.99/mo * 12 mo/year * 29,400,000 = 2,818,872,000 or $2.8 Billion per year. $7.99 * 12 mo/year = $95.88/year per subscriber -- so '$26B' is a typo -- a big one!

Don't forget Netflix also has 31.8 million DVD rental subscribers.

Source - http/finance.yahoo.com/news/numbers-netflix-subscribers-205626248--finance.html

 

[dark_lord69]

If you look at who has what for streaming content.
Netflix and Hulu are the clear winners.

Hulu actually has more and newer TV shows but Netflix has some showtime shows like Breaking Bad, Weeds and they HAD Dexter at one point...

 

[ben to 10]

my friend's ex-wife makes $63/hour on the internet. She has been unemployed for five months but last month her check was $19141 just working on the internet for a few hours. Read more heres what i do, http/ace60.com