Netflix Stock Price
BUZ INVESTORS Media Streaming Giant In the modern era of tech wars, one front is heating up: streaming. Now that programs have the ability to become truly global successes due to the accessibility through the Internet, shows have come to define culture in a way that was previously unheard of.
The ability to have such wide-ranging success is what makes the Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) competition for streaming hits one to watch for investors. More importantly for those looking to invest, have we entered a Netflix stock price vs. Amazon stock price situation? Or is there room enough for both to thrive in the streaming industry?
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Media Streaming Giant
With monster hits like Stranger Things, House of Cards, and The Crown making waves for their production value and quality, Netflix has both the critical appeal and the support of fans to help propel it forward for the foreseeable future.
You see, where once Netflix was once a simple streaming website, albeit the first to go mainstream, what’s really pushing the company forward now is the ability to produce quality shows that can’t be viewed anywhere else.
And it is shelling out money to make sure it keeps those production values high. The company is projected to spend more than $6.0 billion in 2017, up from $5.0 billion in 2016. This is also double what Time Warner Inc‘s (NYSE:TWX) HBO spends, despite HBO producing Game of Thrones and other shows with famously expensive demands. (Source: “Netflix: The Monster That’s Eating Hollywood,” The Wall Street Journal, March 24, 2017.)
While Amazon user growth has been strong since the service was first initiated, some analysts believed that the company is slowing down. While it counts 66 million subscribers currently, again, it’s hard to say how many of those paying customers are even engaging with the Amazon programs. (Source: “Amazon has at least 66 million Prime members but subscriber growth may be slowing,” CNBC, February 4, 2017.)
Amazon Prime vs. Netflix
There’s really no competition between the two services when it comes to streaming, at least not yet.
Netflix is laser-focused on the streaming world and has years of experience navigating the space, whereas Amazon is a relative newcomer that has yet to score a mass-appeal, culturally impactful show at the same level of Netflix’s original productions.
Netflix also has a stronger incentive to own the streaming market; it’s the entirety of its business, after all. Amazon Prime TV could crash and burn and it would hardly make a dent in the Amazon empire.