Netflix, Inc. (NFLX), Amazon.com, Inc. (AMZN): This Changes A Few Things

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Bottom line

The online rental market has huge growth potential. However, companies should find better ways of dealing with operating costs, as they are eating a great portion of revenue. Netflix, Inc. (NASDAQ:NFLX) is the best positioned in the online-streaming content sector, but you should be aware of the growing competitive forces.

Amazon.com, Inc. (NASDAQ:AMZN) is focusing in delivering not only movies and TV shows but other content, such as books and podcasts that have a greater utility as they can be downloaded and enjoyed offline.

This market is all about customers’ loyalty as they are the principal revenue driver, so increasing the customer experience and satisfaction is a must. Competition is fierce, as other players are also demanding a piece of the pie: Hulu and Google Inc (NASDAQ:GOOG) should not be forgotten.

Recent rumors about Hulu’s sale could generate the next online streaming giant if acquired by Google for example, so investors should follow this event closely. More competition is great for customers but terrible for investors. Beware!

The article Online Streaming Shakes Things Up originally appeared on Fool.com and is written by Damian Illia.

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