Amazon Assaults Netflix Streaming Dominance

Netflix started streaming its library in 2007 as a perk to its popular mailing service and five years later it’s streaming subs outnumber mail subscribers by 11 million. This incredible growth of popularity led to higher revenues and much higher fees as they were clearly on the radar of the industry for paying well, essentially competing with their own output deals as they came up for renewal. Speaking if renewal problems, this dilemna left Amazon without the guant catalog of movies from Starz, which helped build the popularity of the channel. Amazon took notice and launched their own premium service and expanded it’s titles from 5,000 to 20,000 in a little over a year. Today they announced that they signed 3,000 new titles from Epix, which were once exclusive to Netflix. Is Jeff Bezos laughing all the way to the bank?

Netflix’s streaming dominance is wavering and as the battle for titles continues, both Netflix and Amazon are moving into original content as well. The streaming pie is getting carved up with other players as well who have their own exclusive arrangement to content. Hulu Plus has 1.5 million subscribers, Redbox and Verizon are partnering to offer a DVD+streaming package later this year and rumors persist that Apple will eventually enter the space. Streaming is here in a big way and dominates a significant portion of the internet traffic. As live streaming is set to explode in the next five years, how will the internet handle all of this traffic. How will smaller content producers compete online for the streaming revenues as movie titles exhaust and new ones cannot support the monthly fees? Stay tuned or should we now say, keep on streaming?

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