Amazon Going After Netflix Soon

A shocker to me, at least. Interesting that Amazon would go after the Netflix market, seeing as Netflix is so entrenched as the top online DVD rental service (and by far). Unless Amazon has a grandoise plan, it’ll be hard to beat Netflix’s quick service and roughly 30 distribution centers. The latest recorded number of Amazon distro centers I could find was 7, but that was back in 2000. That is a start, it sure beats Wal-Mart and Blockbuster. Netflix has 2.23 million subscribers already, too. I don’t exactly buy the DVDs being around as long as the gas engine, though. We’ll run out of oil sooner or later, that or the enviroNazis will force hybrids or non-polluting engines upon us.

Amazon.com plans to enter the DVD rental business in a move that will put the online retail giant in direct competition with Netflix.

News of Amazon’s intentions were disclosed Thursday afternoon by Netflix founder and CEO Reed Hastings during the company’s earnings call. Netflix said it would cut prices to ensure future growth in the face of competition from Blockbuster, Wal-Mart Stores and soon Amazon.

“We think DVDs will be more dominant in five years than they are today,” Hastings said. “The evolution to downloading will be slow. The DVD will last as long as the gas engine.”

News.com Link


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