Wilson Bennett: E-commerce giant, Amazon says it plans to invest more into original programming in order to compete with Netflix and Apple.
Wilson Bennett reports that Amazon, the online retail giant, has announced that it intends to “double down” on its investment in the production of original programming to help it contend with fierce competition from its US rival, Netflix.
The company which has aired several of its original production on its online-streaming service, Prime Instant Video, trails Netflix by a considerable margin in terms of subscribers; Netflix has 60.4 million to Amazon’s 13.6 million but it also faces what could be a formidable challenge from tech giant, Apple when it launches its rumored streaming service at some point in 2015 to a massive iTunes customer base.
Wilson Bennett technology analyst, Nuriko Katsuda says that Netflix’s lead will be difficult to assail. “They’ve got two award-winning shows in “House of Cards” with Academy Award-winner, Kevin Spacey and the third season of its prison-based black comedy, “Orange Is The New Black” has just become available,” she explained. One of Amazon’s shows, a comedy entitled ‘Transparent’, has won 2 Golden Globe Awards including one for Best TV series and another for Best Actor for Jeffrey Tambor.
Amazon offers its streaming service as part of its $99 annual subscription to Prime, a premium membership scheme for Amazon customers that features free one-day shipping on many items available on its e-commerce platform as well streaming music and free cloud storage.
“The pricing and the additional investment in programming will look even more attractive to consumers considering Netflix charges $8.99 per month just for content streaming,” added Katsuda.
Wilson Bennett has recently described Netflix’s stock as “significantly overpriced at anything over $300”. The stock is currently trading at $660.95
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