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  • Epix Deal Brings More Good News For Amazon, And Worry For Netflix [View article]
    Right.....and I have to think its working toward that. Amazon can stream through this and also offer access into the Marketplace on gaming devices.
    Sep 4, 2012. 06:07 PM | Likes Like |Link to Comment
  • Epix Deal Brings More Good News For Amazon, And Worry For Netflix [View article]
    You're right to point out the the statement is ambiguous - and it shouldn't have been. I'll try and clear up the margins commentary.

    To me, the only thing that would hold a dynamic streaming operation like Amazon up would be the speed of the streaming (which is good), the price ($79 annually, comparable with Netflix) and the size of its offerings (just got a whole lot bigger). I have to think that gaining the Epix statement will improve the last enough to gain more subscribers (especially as Netflix lost the exclusivity rights) and that will improve revenue numbers to compete with whatever Amazon paid out for the Epix deal. This method was how Netflix maintained its profits over the years and why Amazon was never able to compete. Amazon Prime membership has so many benefits but this could really be the one that gets subscribers flocking over. Epix movie numbers are staggeringly big and when you combine Prime member's ability to stream these with the other perks, Netflix won't be able to compete.

    To me, this is what Amazon needed to get ahead. The influx of subscribers will be what brings margins up. Amazon's paying Epix the same deal for rights, I assume, no matter the number of viewers/subscribers and I have to think its calculations are correct in assuming that they'll get some serious Netflix traffic with other perks available with subscription.
    Sep 4, 2012. 05:40 PM | Likes Like |Link to Comment
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