Monday, July 13, 2009

Netflix Could be Aquired by Amazon?

Hmm it made the stock shoot up but it would make sense for both companies to join forces.

But combined, the two would offer a very formidable combination. The reason is that while Netflix mostly offers older titles through its streaming service, Amazon offers all the new movies. Netflix of course sends out new movies via DVD by mail, but that service will one day go away in favor of streaming or downloading.

Another thing that could be a result of the pairing is that they can create synergies in their distribution networks if they consolidate with one another. That means you might be able to buy stuff on Amazon from an Xbox360 (maybe even using Microsoft points) or maybe from kiosks if Netflix decides to directly compete with Redbox. Also consolidating their fulfillment centers might make for millions in savings on shipping as well.

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