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 year as 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 companies. Look for this trend to continue until the content bubble bursts. 

As for why HBO chose to sell their content to Amazon, it's not really because Reed Hasting's is combative and arrogant, as Rocco Pendola claimsAmazon SELLS a lot of HBO shows via digital download, therefore it makes Added business sense if I am HBO to license material to Amazon. I'm not saying Reed's combativeness might not have something to do with Netflix not having HBO content, but this is business, if it would have made $$ sense, they'd have done it. 
Putting their older content on Netflix dilutes the potency of HBO's brand, without the added sales. With Amazon they gain added sales, it is a much more synergistic deal. (win-win)

Netflix is simply way way way overpriced. Look for it to continue to fall. 


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