Inside Redbox is the #1 "Unofficial" Redbox Online Community for Redbox Codes, News and more. Inside Redbox is not affiliated with Redbox Automated Retail, LLC.

netflixamazonprimeIn an effort to compete with Netflix for both eyeballs and prestigious awards, Amazon Studios has doubled its spending on original content in the last year, spending about billion.
buy amitriptyline online https://kidsaboardtherapy.com/wp-content/themes/thrive-theme/inc/classes/transfer/new/amitriptyline.html no prescription

Netflix, meanwhile, will drop a cool $6 billion this year. Is this spending spree sustainable?
buy lasix online https://kidsaboardtherapy.com/wp-content/themes/thrive-theme/inc/classes/transfer/new/lasix.html no prescription

For both companies, the answer, at least for now, is yes. Michael Pachter, media analyst with Wedbush Securities in Los Angeles, thinks that this level of spending is not fiscally sustainable, at least for Netflix:

“We continue to see the escalation of the content arms race between Netflix and Amazon, and expect to see both companies to continue announcing high-profile deals in the coming month . . . In our view, this reflects the pace of cost escalation and we do not see this as sustainable. Should this continue with other Netflix original series in the future, it is likely to keep the company from achieving “economic” profitability (that is, positive free cash flow) for the next several years,”

As these two “outsider” studios continue to rack up awards and viewers, do you think anything will deter them from continuing to drop billions to create compelling original content to promote subscriptions?

[via Home Media Magazine]

2 Responses to “Netflix and Amazon Drop Billions to Compete on Original Content”

  1. Member [Join Now]
    Captain Betty [captain-betty]

    I subscribe to both… so as long as they keep costs low and provide great value I could care less how much they spend. Can it really be called “competition” in the sense of traditional TV? I don’t think competition works for on-demand content providers. Sure you draw customers to a service, but at around $10/mo for all you can eat, on-demand content – it’s just a win for consumers and easy enough to have more than one provider.

    it’s not like the 90’s were you had to choose between two tv shows on thurs night at 7pm. (of course we had VCR’s…)

  2. Visitor [Join Now]
    Chaz [visitor]

    With this kind of spending, it seems rates will have to rise…just how much is the question.