Seeking Alpha

Amazon (AMZN) scores a multi-year deal with Viacom (VIA) for many of the TV shows Netflix (NFLX...

Amazon (AMZN) scores a multi-year deal with Viacom (VIA) for many of the TV shows Netflix (NFLX -1.2%) lost last month, and boasts some of the content will be exclusive. "Hundreds of TV shows and thousands of TV episodes" from Viacom, including popular kids' shows such as Dora the Explorer, Blues Clues, and Spongebob Squarepants, are being added to Prime Instant Video, with British/German Lovefilm subs getting access to some of them this summer. Some of the content will also be added to the kids-specific Kindle FreeTime Unlimited service. (Amazon/Epix deal) (Downton Abbey exclusive) (original shows)
From other sites
Comments (13)
  • DIgitalMediaView
    , contributor
    Comments (668) | Send Message
     
    Every development in the streaming video space in 2013 makes it clear that competition is heating up for premium content, which will ultimately impact relative market shares of the services but will immediately impact content costs. The idea that NFLX is gaining buying power in this environment is absurd. It's the content companies that are dictating terms to the distributors right now, from economics to put options on what programming they are obligated to take (see CBS ex:http://yhoo.it/15xR1Yn).
    4 Jun 2013, 10:41 AM Reply Like
  • krk
    , contributor
    Comments (826) | Send Message
     
    Content is King:
    Video content providers are squeezing top dollars pitting Cable, Netflix, Amazon, Google against each other. I think the streaming content platforms will have to find another fork of innovation soon to stay relevant. And solvent.
    4 Jun 2013, 11:14 AM Reply Like
  • investingInvestor
    , contributor
    Comments (1550) | Send Message
     
    Amazon Prime is a great deal. Everyone should research Prime. Prime is a Swiss Army knife. Prime is very sticky. Prime is so profitable because Prime customers spend much more per year at Amazon while they are saving money.

     

    I belatedly realized that Netflix was being "Amazoned". Like Borders, B&N, Best Buy, and Walmart. Hastings dropped the ball when he split the DVD and streaming businesses, Bezos is playing with that ball.
    4 Jun 2013, 11:09 AM Reply Like
  • Tvaddic
    , contributor
    Comments (250) | Send Message
     
    How did Bezos capitalize on the DVD split? During that time Netflix has grown considerably more than Amazon Prime. And Netflix developed exclusive programs because they say this coming. And is releasing a new tv show based on a upcoming kids movie, that will also appear on Netflix.
    4 Jun 2013, 05:43 PM Reply Like
  • investingInvestor
    , contributor
    Comments (1550) | Send Message
     
    TV addict, Bezos watched the vast multitudes leaving Netflix then. Bezos offered the public a deal with Amazon Prime that they wouldn't refuse. Win-Win.

     

    Bezos is feeding the public's viewing habits. Amazon is producing tv shows.

     

    Netflix, don't look back. Oh, you did!
    4 Jun 2013, 11:40 PM Reply Like
  • Tvaddic
    , contributor
    Comments (250) | Send Message
     
    You still didn't answer my question, AMZN doesn't even rent DVDs. I'm assuming when you say the vast multitudes left Netflix you are talking about Qwikster, since then more than 5M customers subscribed to Netflix, including international numbers. And recently it was revealed that NFLX owns 89% of the streaming market compared to AMZNs 2%. Amazon doesn't even release their prime numbers, I don't see how they are/will beat Netflix.
    5 Jun 2013, 04:07 PM Reply Like
  • investingInvestor
    , contributor
    Comments (1550) | Send Message
     
    TV addict, I recommend that you check out Amazon Prime. Then, test drive Amazon Prime for a month for free.

     

    Do you really use DVDs?

     

    I made no recommendation about Netflix. Netflix is being "Amazon'd" like many other retailers and services.
    6 Jun 2013, 12:24 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1442) | Send Message
     
    Lest too many be stampeded into declaring the death of the Netflix model from today's news, I must point out that Dora, Spongebob, Blues Clues, and Downton Abbey are all still available from Netflix via the still very efficient Netflix DVD service.
    4 Jun 2013, 12:31 PM Reply Like
  • forceOfHabit
    , contributor
    Comments (62) | Send Message
     
    I think its safe to say that Dora, Spongebob etc. are for the toddlers, and I would guess that the convenience of live streaming for that demographic (no sticky fingers or scratches on CD's, don't have to remember to bring the DVD's with you to grandma's house, on demand vs plan ahead availability etc.) far outweigh the logistics of DVDs.

     

    In terms of building a long term ecosystem, I think capturing the kiddie market is huge. I've been skeptical of AMZN Prime, but I have to agree, NFLX is being "Amazoned" (like investinginvestor said).
    4 Jun 2013, 12:51 PM Reply Like
  • Sakelaris
    , contributor
    Comments (1442) | Send Message
     
    To forceOfHabit: Lord forbid that anyone might actually feel the need to supervise a child's TV experience or actually plan anything ahead!

     

    Yes, streaming has its conveniences, but the rental of DVDs (and their kindred Blu-rays) are of tremendous value to the cause of reasonably-priced diverse content because of their "first sale rule" protection. If rental availability of discs ends or sharply declines we will ultimately see higher costs to stream and probably we will need to subscribe to numerous streaming services to get what we can currently get from combining Netflix streaming and discs. Sadly, most consumers seem to be asleep on this.

     

    Anyway, there is still a lot of streaming content on Netflix geared to children.
    4 Jun 2013, 01:16 PM Reply Like
  • Tvaddic
    , contributor
    Comments (250) | Send Message
     
    This is why NFLX is quickly pivoting to exclusive content.
    4 Jun 2013, 05:45 PM Reply Like
  • DIgitalMediaView
    , contributor
    Comments (668) | Send Message
     
    Problem is that originals are way more expensive (and risky). Two two-season program commitments on the order of Hemlock Grove or House of Cards--52 total episodes--cost about the same as the library of hundreds of programs and thousands of episodes of Viacom content (http://seekingalpha.co...).
    4 Jun 2013, 07:38 PM Reply Like
  • Tvaddic
    , contributor
    Comments (250) | Send Message
     
    You have rising cost from the streaming deals with the content companies. NFLX would rather pay $200M for 4 years, than a rising $100-150M every year. And in addition to that, NFLX gets a much longer exclusive deal. Also these exclusives create brand identity, unlike the other content which is on Hulu, Amazon, DirecTV etc.
    5 Jun 2013, 04:11 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector