Amazon – a conspiracy theory (maybe netflix is smarter than we thought)

Amazon released its new tablet today – Fire – at a remarkable price point of $200. This is $300 less than Apple’s iPad, and while it won’t be compatible with some Apple’s ecosystem (like iTunes), I’m sure it will have enough content, using the Android app platform, to make it worth it.

As a book reader, Kindle’s matte finish, which prevents glare, has always been a nice advantage over the iPad.

Plus, with Amazon Prime expanding its content offerings for video streaming and the increasing inventory of Andriod apps that will work on it, it is beginning to have enough content to compete.

What’s most intriguing, though, is the possibility that Amazon is setting up to purchase Netflix.

By most accounts, especially in marketing circles, what Netflix did and the way they did it with regard to their membership pricing and splitting the business seemed almost asinine. But given Amazon’s new Fire. there may have been a method to the madness.

I wouldn’t be at all surprised if Amazon purchases Netflix and incorporates their large library of streaming media to their offering. This would immediately give Amazon a huge inventory of content.

It would also explain why Netflix split the business and gave the “Netflix” name to the streaming side. “Netflix” is obviously more recognizable, and Amazon will want to promote that acquisition under the name that made it famous.

This would mean Netflix made the conscious decision that building a new DVD rental brand – Qwikster – would be worth the time and money when considering the money they will make on an acquisition deal.

And, aside from all that, it just got that much easier to purchase products from Amazon now that you have their entire store right in your hand.

With Amazon, the possibilities are endless, and one thing we can assume is that they’re probably going to get this right.

Should be fun to watch.

– My name is Jon Friesch, and I approve of this message.


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