Showing posts from April, 2014

Amazon gets HBO Content from Prime- what it means for Netflix

Amazon now has a content deal with HBO that Netflix and Reed Hasting's must be envious of. 

Amazon's content is getting better and better ... Pricing wise- Amazon Prime costs the same per yearas Netflix ($99 vs $96 I suppose) but includes two day shipping for all orders placed, and if you own a Kindle, a free book rental a month. 
It's a content war at this point, and although Netflix does have the hit House of Cards, Amazon's library is gaining rapidly and offers superior value I described above. 

To all you dreamers who are pricing Netflix at 175 current earnings let this be a rude wake-up call for you. There is such a thing as competition, and while one must admire Netflix and their first mover status and their ability to risk a ton on original content, paying 100 million for House of Cards, etc. when you start to succeed you gain imitators. Consider it flattery. 

Netflix owns none of its content, and content creators can raise rices because there is demand from other c…

Microsoft Brings Office Suite to iPad- Apple= Big Winner

Look, let's be frank. The price of software is falling for two reasons.

1. The operational base which one has to build makes it far easier to build and create.
2. With the global reach and distribution ease the internet offers (no more CD installation baby) the associated production costs and barriers to new software have been diminished or vaporized.

With Google making money on the back end (from data mining, advertising) they are giving away software for free. Apple makes money on the hardware, and is now giving away it's productivity suite, iWorks to Apple users.

WHY in the world will people then continue to shell out a ton of money to Microsoft in the future for Windows/ Office, which account for 90% of the operating profits that Microsoft generates?

Facing such pressures, Mr. Softy has already cut prices on Windows licenses on low priced machines ($250 or less) ... as well as dropping Windows Mobile licenses to FREE (not that there was much demand for them to begin with) …