WSJ: Amazon Eyes Netflix Market31 Aug, 2010 By: Erik Gruenwedel
Long considered a potential owner of Netflix, Amazon reportedly is shopping a proprietary subscription streaming service that would ostensibly compete with it targeting largely catalog content.
The Wall Street Journal Aug. 31 reported Amazon has pitched the service to General Electric, Time Warner, News Corp. and Viacom, among others.
With more than 10 years of unchallenged success and profit in both online DVD rentals and the burgeoning streaming market, Netflix has more than 15 million monthly subscribers and is the marvel of Wall Street, even in a recession.
In analyst calls over the years, Netflix CEO Reed Hastings and CFO Barry McCarthy have alluded to the dearth of competitors in the market and the ever-present possibility of deep-pocket newcomers.