Netflix CEO: Amazon To Launch Standalone Video Streaming Service

By Alistair Barr

SAN FRANCISCO (Reuters) - Netflix Inc said on Wednesday that it expects Amazon.com Inc to brand its video streaming offering as standalone service.

Netflix also said it expects Amazon's standalone service to be priced below its own service.

Netflix made the prediction in a letter to shareholders that was posted on its website Wednesday.

The company warned in the letter that it will face increased competition from Amazon, Hulu and other businesses as viewing solutions for TV shows and movies proliferate and improve.

"One class of competitors is the other over-the-top pure plays such as Hulu Plus and Amazon Prime," Netflix said in the letter. "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."

Amazon Prime is a $79-a-year service that provides two-day free shipping in the U.S. and free access to thousands of TV shows and movies streamed over the Web and via devices like the popular Roku TV box.

A spokesman at Netflix declined to comment, as did a spokeswoman at Amazon.

(Reporting By Alistair Barr; Editing by Bernard Orr)

Earlier on HuffPost:

Comments

[ferdburfle]

10:57 AM on 02/01/2012

"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."

Duh! PRIME is ALREADY cheaper than Netflix, so standalone being cheaper is no great leap in thought.

frankcaprafan is correct: How DOES this guy still have a job???

[frankcaprafan]

11:36 AM on 02/01/2012

Wow. You took a long vacation from HPOST.

[frankcaprafan]

12:41 AM on 01/30/2012

How does this guy still have a job?

[edenooch]

12:21 AM on 01/28/2012

MEGAUPLOAD was a serious! rival!

[Knowledgeseeker]

10:10 PM on 01/27/2012

I hope it offer more movies than Netflix

[iamwired]

01:23 PM on 01/27/2012

I didn't even know Amazon was considering streaming as a standalone service, until Netflix told me. Thanks for the advertisement. I'll look right into it.

[UtahSlim]

02:59 AM on 01/27/2012

This company will be a case study on how an arrogant CEO and yes men board can destroy goodwill overnight. That he still collects a paycheck is an insult to shareholders.

[iamwired]

01:24 PM on 01/27/2012

Hey wait a minute this... uh ok you are right. :)

He must have serious pull with that board not to be fired by now.

[liberalbug]

09:12 PM on 01/26/2012

I like Netflix, wish I bought stock when it recently crashed after the CEO flubs. Still, competition is a good thing. I have no loyalty.

[Arnold Pierce]

07:38 PM on 01/26/2012

I am with Netflix for the DVD's. The streaming video is just a nice to have.

[iamwired]

01:27 PM on 01/27/2012

But if what you are looking for is new rentals, there are plenty of online movie rentals (and yes with boxes you can connect to the TV) that offer new movies without the 30 plus day wait. The DVD rental is the first thing I took off. I was waiting the 30 days, then the Long Wait status game started. I rent individually since there aren't that many new movies I need at one time. I kept the streaming to watch old stuff and TV shows.

[MTY INDACHI]

05:42 PM on 01/29/2012

the 30 day wait shouldn't even be close to being a deal-breaker to any consumer looking for options. 30 days is pure marketing preying on the instant gratification crowd. you really need to watch a movie that bad? waiting 30 days is that big a deal to you? really?

[eric14]

06:51 PM on 01/26/2012

Planet Earth needs a global provider of online movies so that I can watch any movie from any country. Sub-titling is easy. Problem with the US providers is they are so parochial. The world has a market of billions.

More and more I feel cut off from world culture because I do not have access to sub-titled foreign movies. In the emerging global culture, the domestic obsessions of American online movie providers will spell their doom.

[nychaseter]

09:18 PM on 01/26/2012

Netflix has an outstanding selection of foreign films, both DVD's by mail AND Instant. Not saying they have every one ever made, but they have enough you could entertain yourself for years. It's one of my favorite features of the company. I've seen more amazing foreign films thru them that I would never had otherwise heard of.

[eric14]

09:51 PM on 01/26/2012

Thanks. I will pursue this.

[AFFamily]

06:37 PM on 01/26/2012

I'd like to meet the individual who chooses what media to license and upload to their streaming service. Often I'm searching through the catalog on my PS3 and wonder to myself, 'Nobody can really want to watch that C-Budget film'. I'd like to use the example of the availability of Taintlight 2 and Gigli.

[Redhunteur]

06:04 AM on 01/27/2012

There are many of us that enjoy so-bad-it's-good movies. I thrive on them and have even been in one (Highway 91). Part of my joy is spotting flaws and the rest is often just mockery.
Harmless fun.

[iamwired]

01:30 PM on 01/27/2012

Did you ever watch Thankskilling? LOL, talk about low budget, yet hysterical. As Redhunteur says, so bad its funny.

[Ladyjock]

06:33 PM on 01/26/2012

It will be a wait and see, but if Amazon's offers are better, then they're the way to go. I don't believe that the increases from Netflix is legit. It doesn't cost them anymore $ to let me have 3 dvds out at a time as opposed to the new rates of allowing only 2 w/ streaming. They went after their customer's wallets and they may find their demise in doing so. Time will tell.

[NerdyStudent]

05:17 PM on 01/26/2012

I was going to suggest MegaUpload then I remembered.

[Sup Dooder]

06:59 PM on 01/26/2012

You were going to suggest that people steal content? Bravo.

[nychaseter]

09:19 PM on 01/26/2012

Of ocurse, I'm not saying I do that...but I hear some people do. LOL

[Juicyhil]

05:39 AM on 01/30/2012

Rly? People do that? Why would you. Those poor actors....

[PD187540]

04:30 PM on 01/26/2012

If Amazon has a lower price AND a better selection of TV shows and movies, then I'm cancelling my Netflix service. Frankly, I can't stand how Netflix "shuffles" their movies and shows around. One day, a movie is available, and the next day, it says "available until....." That aspect of Netflix MUST go. Why can't they just get a bigger server to store those films and keep them there permanently?? I don't get it.... But like I said above, if Amazon is cheaper and has a wider variety, I'm switching.

[ejay579]

05:10 PM on 01/26/2012

Maybe they do not permanently store more because they do not own the movies but only pay a license fee to use them.

[NerdyStudent]

05:16 PM on 01/26/2012

Bingo.

That and people on the other side complain "you have no variety on the streaming service, it's the same dumb movies again and again, that didn't even make money when they hit theaters"

[old broken record]

05:16 PM on 01/26/2012

same here

[flny4321]

04:26 PM on 01/26/2012

Wishful thinking with netflix going under ! they will suffer and then be scooped up for bottom price by another, the fees will sky rocket, programming will really suck (worse than now, with all the b-rated movies) just so amazon or who ever can reap the rewards, and all the slaves will like or lump it. So in another words, big buisness as we know it. Good luck slaves.

[Trilby]

03:54 PM on 01/26/2012

Amazon's selection, at least now, is less good than Netflix's. Also, I have come to appreciate Netflix's storing my queue and making suggestions for me, that you don't get with Amazon or Hulu+ both of which I've tried.

[koppenberg]

08:46 PM on 01/26/2012

I agree with your points about Amazon, but Hulu does have a queue and suggestions.

[iamwired]

01:33 PM on 01/27/2012

I personally hate the suggestions. Everytime my daughter watches Teen hits I am suggested Justin Beiber movies.