Letting Viacom go was a calculated risk for Netflix, Inc. (NASDAQ:NFLX). The company believes it can attract more business by focusing on exclusive content rather than offering the largest selection of shows. In accordance with its new strategy, Netflix signed its own multi-year deal with DreamWorks Animation. The contract brings original TV shows based off of DreamWorks characters such as Shrek and the Croods to Netflix. While the company will get over 300 hours of original content, the shows won’t be delivered until early 2014, a long time for angered parents to switch to Amazon Prime.
Again, these deals point to one thing: everyone will win. While Amazon is slowly catching up to Netflix in terms of content quality, Netflix still holds a commanding lead. Its exclusive content, including House of Cards and Arrested Development, are already award-winning attractions. From content providers to streaming services, if a company is making deals, it will be victorious in the entertainment industry.
The Art of War is full of memorable quotes, but none illustrate Sun Tzu’s message during the “content battles” as well as the following:
“Opportunities multiply as they are seized.”
Companies that are making deals will make money. Every company mentioned is either on or very near their all-time high. As the entertainment industry continues to grow, companies that can make deals and secure content will be the victors. Place an order today, and you might find yourself with a larger war chest for future battles.
The article Be the Victor in the Battle Over Content originally appeared on Fool.com and is posted by Marie Palumbo.
This article was written by Joshua Sauer and edited by Chris Marasco. Chris Marasco is Head Editor of ADifferentAngle. The Motley Fool recommends Amazon.com, DreamWorks Animation, and Netflix. The Motley Fool owns shares of Amazon.com and Netflix. Marie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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