With the recent rollout of its Prime Instant Viewing service, Amazon is positioning itself to take on streaming leader Netflix. The move, according to one analyst, could turn out to be a very costly blunder by the online retailer.
Brian Pitz, an analyst with U.S. Bancorp, has lowered his rating on Amazon’s stock from “buy” to “neutral”. Pitz believes that costs associated with its new streaming business could cost Amazon as much as a quarter of a billion dollars.
What do you think about Pitz’s dour assessment of Amazon’s new service, Insiders? Will the company be able to beef up its streaming catalog to become more competitive with Netflix, forcing Pitz to eat a bit of crow? Or is Pitz spot on with his pessimistic take?
(via Home Media Magazine)