24 September 2011

About The Idea Of Amazon Buying Netflix

Amazon.com logo            netflix logo

Or more precisely as MSN Money asks it:

Could Amazon Buy Netflix?   <--  somewhat implying that they could.

NO  would be  my answer to such idea.

At least i don't see why Amazon would spend 6 billion dollars or more in buying Netflix when their already in place Amazon UnBox is yet to fully integrate the acquisition of iLoveFilm. Without mentioning that both are already quite geared to movies, just as Netflix.

If Amazon were looking to buy something.  They would instead go and buy Hulu.

Why would they go for Hulu and not NetFlix?

Because Hulu means TV.  A segment where they are weak.  And if we talk TV, Hulu is where is at.

Even Google agreed to that, as even they went  all for it and bullied their way in with a out-of track power bid, that left Hulu owners with a bittersweet taste. One Hulu owners hav not yet even decided if they like or not.

My point? 

Why would Amazon go and spend 6 billion or more for something that overlaps with what they already have, instead of 2 to 3 billions for something that complements what they have?

I think they wouldn't. It is known Amazon did bid for Hulu. But It is still unknown if Amazon was the one that submitted a 2 billion bid for Hulu or not. It is also still unknown if that was their limit. If it was and they retired from the bidding at that level. That means that was the highest amount they were willing to spent. An amount that is not even a third of what they would need to buy Netflix, something that like I said, they don't actually really even need right now.

At least that is the way i see it. Because lets remember they also didn't bid – or bid high enough in case they did -- for Blockbuster when it was an actual steal.  A steal DISH network, -- Blockbuster's new owners -- say it is already benefiting them.

So yeah, the answer is NO, because it just would not make any sense at all.

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