Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member., Inc. (AMZN) or Netflix, Inc. (NFLX): Who Wins In This Key Space?

However, while, Inc. (NASDAQ:AMZN) is increasing the quantity of content available for Prime subscribers, it is also improving its quality. Last year, Amazon won the exclusive streaming rights for TNT’s The Closer, one of the most successful series in the history of cable TV. In February, Amazon announced that it had won the exclusive domestic streaming rights for the PBS hit Downton Abbey, beating out Netflix, Inc. (NASDAQ:NFLX) in the process.  Amazon’s financial muscle could allow it to win more than its fair share of such deals going forward.

What it means
Netflix may still have a small edge over Amazon in terms of content quality, but the gap is rapidly shrinking. If Amazon puts a big marketing push behind Prime Instant Video and its new content, some Netflix users will be tempted to switch, particularly as the Netflix content library gets pared down.

Moreover, Amazon only charges $79 per year for Prime (or $39 per year for students), which includes other benefits such as free two-day shipping on most purchases and access to the Kindle lending library. Netflix is already priced slightly higher at approximately $96 per year. The competition from Amazon will discourage Netflix from raising prices for the foreseeable future.

Netflix has rebounded impressively from the Qwikster debacle of 2011. However, the company’s new focus on “curated” exclusive content rather than broad licensing deals could alienate some subscribers when certain movies and TV shows disappear from the service. With Amazon quickly becoming a viable alternative, the risks for Netflix are greater than ever.

The article Will Amazon Prime’s Video Content Library Overtake Netflix’s? originally appeared on is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg is short shares of Netflix and The Motley Fool recommends and Netflix. The Motley Fool owns shares of and Netflix.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.