How Amazon Is Taking On Netflix
Netflix has had the global streaming-video market more or less to itself for some time now, apart from a few tentative steps made by smaller players such as HBO. But now it is getting a major competitor, and one with even deeper pockets. Amazon is said to be close to rolling out its Prime Video service worldwide.
The Wall Street Journal said that the e-commerce giant is expected to expand its video offering into about 200 countries. It is currently only available in the U.S., U.K., Germany, Austria, and Japan.
Netflix NFLX expanded its global reach in January, launching simultaneously in 130 countries for a total of more than 190 nations and territories. China is one of the only major markets where the service is unavailable. The online rental giant recently announced that it would license its content to Chinese services because the regulatory environment in that country is too hostile to outsiders.
Amazon has shown that it is more than happy to lose money for years in pursuit of a market that it believes is worth the investment. And it has a massive source of cash in its Amazon Web Services data-hosting platform, which generates roughly $10 billion in revenue every year.
As the e-commerce giant steps up the competition, Netflix could feel increasing pressure to find an acquirer with deep pockets to help it grow. Both Apple and Disney DIS -1.04% have been reported as potential buyers, although at $50 billion, it would be a large mouthful for either one.
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