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Amazon Heats Up the Streaming Competition With PS3 App

Deutsch: Logo von Amazon.com

Deutsch: Logo von Amazon.com (Photo credit: Wikipedia)

While there are many ways to stream content, most people seem to favor streaming services subscriptions where you pay one low fee every month in order to access the entire streaming library on demand.  In the United States, Netflix and Hulu have dominated as the go-to services.  but Amazon Prime has been flexing its muscles recently, including beefing up its streaming library through a couple of strategic partnerships with Discovery Communications and Viacom.  But their current announcement that it now as an app available on Sony’s Playstation3 signals one thing – Netflix and Hulu, you have some serious competition.

Amazon VP of Video and Music Bill Carr said in an interview yesterday “A lot of our customers have been asking us to make our services available on the PlayStation 3 for a long time.  It’s all about building the best digital video service available.”

For consumers, this makes a things even more interesting with three solid on demand streaming choices.  With a library at over 17,000 titles, it still isn’t as comprehensive as it’s rivals, but the recent moves made by Amazon should signal to the industry that it is playing for keeps.  Additionally, it’s cost is $17 per year cheaper than the alternatives.


Both Hulu and Amazon have one serious disadvantage over Netflix – no parental controls, and content that has parents very concerned about letting their children loose on these sites.  If  it wanted to push ahead as the clear choice, Netflix needs to address it’s limitations in it’s current parental controls.

Additionally, Amazon also offers something that neither Netflix or Hulu do:  the ability to access digital video rentals and purchases (click here to learn more) and purchases.  Hulu’s advantage:  it’s still the clear choice in terms of being able to access the most TV series for multiple seasons.  But Netflix has also been getting chummy with television content copyright holders, because one thing is certain about these services – they are very good for Nielsen ratings (read:  higher advertising revenues).

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Netflix Cautious About Potental Competition After Exceeding Wall Street’s Expectations in Q4 2011

Fourth quarter revenues and the reversal of subscriber losses were the good news for the embattled streaming and DVD mailing service provider.  Analysts in general have been split – many predicting that the king of streaming will soon regain its thrown, while others spouting more troubles ahead.  After posting revenues of $876 million, which were $18 million higher that forecasted, share prices rose 13% according to Reuters.  This of course is positive news, especially since Netflix has has to ante up to entertainment conglomerates in order to gain access to the copyrights of newer, fresher content needed to keep the existing customer base happy and win new subscribers this year.  Reed Hastings predicted that content acquisition costs will continue to increase each quarter, but that the rate of growth will begin leveling off.

In the meantime, Netflix also noted that it predicts Amazon will move forward in branding a video streaming service available for subscription separate from Amazon Prime.  Prime members can currently stream about 10,000 titles for free, as well as rent or purchase digital copies of movies and television shows for a reduced fee.  Non-Prime members have to pay full price for digital downloads, but they are not able to access the streaming library for unlimited viewing as Prime members can.  In a letter to shareholders posted on its website, Netflix noted “One class of competitors is the other over-the-top pure plays such as Hulu Plus and Amazon Prime.  We expect Amazon to continue to offer their video service as a free extra with Prime domestically but also to brand their video subscription offering as a standalone service at a price less than ours.”