Monday, February 13, 2012

Amazon and Viacom make a deal


The media giant Viacom has partnered up with the internet conglomerate giant Amazon once again.  This time in regards to Amazon’s new streaming service, Amazon Prime.  Viacom and Amazon agreed on a pact that will allow Amazon to stream two thousand additional titles to their collection, from TV stations such as MTV, Nickelodeon, Comedy Central, TV Land, to VH1 and HBO.  This will put their total number of streamable items up to 15,000. 
This is clearly a way to compete against Netflix.  Although Netflix had some problems this year, they tried to split into two separate companies, the streaming part, and the physical dvd section of it as well.  They also struggled with changing up the billing scheme and almost went out of business in the three days they had the new structure enacted.  They have since reverted to their traditional ways that have made them the industry leader in their field. 
Netflix has just surpassed P2P as the highest useage of bandwith in the US.  Amazon has since seen the potential in this market and has been working tirelessly on trying to make their product compete with Netflix.  At $79 a year amazon’s prime is much cheaper than Netflix. 
Due to Netflix’s recent marketing issues, and maybe not being able to relate to the customer as they once did, would you consider putting your money in an alternative such as Amazon’s prime feature?  What margin for error does the customer relations department in Netflix do you think they have?  

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