Netflix, Inc. (NFLX) and Amazon.com, Inc. (AMZN)? The Early Mover Is Still Winning

A Hulu threat?

The one thing that Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) don’t have is current content. That’s been Hulu’s day-late saving grace. Although sports and news is still lacking at Hulu, being able to watch shows in the season they air is enticing. If Hulu is sold and can get its content providers comfortable with the idea of releasing more content in a more timely fashion, it may be a threat to Netflix and Amazon.

A better bet is that IAC/InterActiveCorp (NASDAQ:IACI) backed Aereo eats into Hulu’s business. Aereo basically rents television antennas to subscribers so they can watch in-market air broadcasts live over the Internet. This gives customers access to local sports, news, and most, if not all, of the television that Hulu has to offer.

Big changes

The television industry is in for big changes. Netflix and Amazon both have great positions, but Hulu hasn’t changed enough to be relevant. Thus, unless Hulu makes big changes, the other two entrenched competitors are likely to see continued growth while Hulu flounders at the hands of new entrants.

Netflix, with its highly volatile shares, is appropriate for aggressive growth investors. Amazon.com, Inc. (NASDAQ:AMZN), meanwhile, remains a long-term buy for momentum investors. Disney, for its part, will actually look more enticing after it exits Hulu and can focus on its content—leaving others to deal with Internet distribution.

The article The Early Mover Is Still Winning originally appeared on Fool.com.

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