Could Amazon.com, Inc. (NASDAQ:AMZN) actually beat Netflix, Inc. (NASDAQ:NFLX) in its own game? The Everything Store could be a better Netflix, implies Cory Johnson in a discussion on Bloomberg’s Market Makers where he also gave the reason why.
The comment comes from Johnson as Amazon.com, Inc. (NASDAQ:AMZN) has recently announced that they will enter the “very risky” movie production business. It has also recently signed legendary filmmaker Woody Allen to make his first television show for them.
Netflix, Inc. (NASDAQ:NFLX), of course, is still continuing to broaden its selection of content and that includes producing their own shows for their subscribers.
“When you think about the big companies in technology, their physical plan, in a lot of ways – whether its Google, Microsoft, Apple or Amazon – is nearly identical. Netflix hosts their service on Amazon Web Service servers. So if anyone knows the Netflix business well and what it takes to run such a business, it is Amazon,” Johnson said.
Johnsons also said that Amazon.com, Inc. (NASDAQ:AMZN), like Netflix, Inc. (NASDAQ:NFLX), has been after original content for quite some time and they have had great success in the recent Golden Globes winning some big awards. This finally shines a light on this business they have been trying to grow, this Amazon Prime business, he said.
Furthermore, Amazon.com, Inc. (NASDAQ:AMZN)’s advantage over Netflix, Inc. (NASDAQ:NFLX) is that they have the customer contacts and they know these customers very, very well in terms of what they want and how they consume.
Nonetheless, it’s important to note that Netflix also studies its content and how their customers consume these content very deeply.
Johnson also said that Amazon is playing its smart giving theater owners leeway to release the films they produce before they become available on Amazon Prime. Furthermore, theatrical release makes these films eligible for Oscars and other awards, Johnson said, which could add extra marketing and recognition for the e-commerce giant and its productions.
Brett Barakett’s Tremblant Capital owned 341,062 Amazon.com, Inc. (NASDAQ:AMZN) shares by the end of the third quarter of 2014. By the end of the same quarter, Josh Resnick’s Jericho Capital Asset Management owned 207,000 Netflix, Inc. (NASDAQ:NFLX) shares.