Netflix and Amazon have long been the two main rivals in the streaming video market, largely due to their similar business models. Both offer unlimited streaming video for one low monthly/yearly price. It’s the same as having a virtual membership with unlimited access to the entertainment you want.
So when video tech giants like these make moves that essentially benefit one another, then the world pays attention. First of all, they both offer streaming video buffets, and although they have a lot of duplicate content, Netflix has its own exclusives and originals, as well as Amazon on their end.
So why would a merger between Netflix and Amazon even be a rumor at this point? For starters, according to Fortune, Netflix has recently completed a data migration to Amazon’s cloud data service.
Now that may seem like a small step, and there is no reason to believe that the two companies could be joining forces. But you have to ask yourself: Why would Netflix option to transfer all of its video streaming data centers over to its closest and most innovative competitor? It is already number one in the in the video streaming market, and Amazon still struggles to keep up with Netflix.
— Amazon Video (@AmazonVideo) February 5, 2016
In terms of original programming, Netflix has already soared above Amazon with its offerings. Fans and subscribers of Netflix shows have shown massive amounts of interest in what they offer, and there is reason to believe that all of the new shows and films coming to Netflix this year are also going to be a hit with subscribers as well. That includes the originals that are coming from Marvel’s TV Universe.
— Daredevil (@Daredevil) January 18, 2016
Netflix also has another service that customers of theirs may have forgotten about at this point – DVDs by mail. Although that service may not be the powerhouse it was in the beginning, it still has a large customer base. The Netflix distribution centers for this have not changed and remain under their own umbrella. It also has very little competition in the DVD-by-mail market now that Blockbuster has shut its doors.
Many people who currently have an Amazon subscription have likely seen a new service of theirs pop up on their home screens. That service gives their Prime subscribers the option to get other products from rival video buffet services like Shudder, Showtime, Starz, and many more.
Amazon has streamlined their services to bring them in under their umbrella, and they sell those services for their competitors. With the standard premium cable channels offering their unlimited streaming services for content they feature on their networks, HBO Go has opted to stay solo with their service and maintain an independent platform to offer to their subscribers.
— Amazon Video (@AmazonVideo) January 24, 2016
This may be beneficial to other services, because they are able to find new customers and add them to their list. But for Netflix, it does not seem as though they would need the extra help to add subscribers.
So here’s the real question: Who benefits the most from a merger? It is not likely that Amazon is trying to buy out Netflix. So that theory goes out the window. But there does seem to be a benefit in it for Amazon to piggyback off Netflix.
At this point, the merger of Netflix and Amazon is nothing but a rumor. But it is fueled by the recent migration that Netflix competed to transition over to cloud-based data centers at Amazon. Netflix even confirmed this in a blog post.
As of this moment, Netflix has officially stopped operating its final data center and migrated completely over to Amazon.
Although the possibility of a merger is nothing more than a rumor, fans and subscribers should keep their eye out for any further announcements from Netflix or Amazon.
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