You remember that kid in high school that always had to be the best at everything. The one that was good at the academic part of school and the physical part (no not that!). They were the nerd and the jock and they were loved by most everyone. Then there was the kid that was really quiet, nerdy, and smart that mainly kept to themselves; The total opposite of that kid, but still had something to offer, right?
Netflix is worth $65 Million and has 100 million subscribers. That’s around 5.5 billion dollars a year. That isn’t anything to sneeze about at all.
Amazon is worth $430 Billion and has 244 million users. There is no set amount or average of how much Amazon makes in a year. But in 2016, just in the second quarter, Amazon made around 857 million dollars. Wow. Just wow.
What’s This Got To Do With Netflix?
It all started with Whole Foods. That’s right, this started with Whole Foods and Amazon acquiring the chain for 13.7 billion dollars. Wanna know what Netflix acquired? A big, fat nothing… Well except for angry Sense8 fans that are constantly trolling to #renewsense8 due to the show being canceled, but other than that, zilch.
This led customers to then ask the question of, “How does one compete with that (Amazon)?”, which is a great question. In fact, it’s very eyeopening to see a company giant like Amazon building their market to an empire whereas Netflix is still “just Netflix”. There is a lot to say when it comes to the comparison of Amazon and Netflix, but truly there is no comparison at all.
NETFLIX CEO, REED HASTINGS, SAYS, WE’RE NOT TRYING TO MEET ALL NEEDS. SO, AMAZON’S BUSINESS STRATEGY IS SUPER BROAD. MEET ALL NEEDS. I MEAN, THE STUFF THAT WILL BE IN PRIME IN FIVE OR TEN YEARS WILL BE AMAZING, RIGHT? AND SO WE CAN’T TRY TO BE THAT — WE’LL NEVER BE AS GOOD AS THEM AT WHAT THEY’RE TRYING TO BE. WHAT WE CAN BE IS THE EMOTIONAL CONNECTION BRAND, LIKE HBO OR NETFLIX. SO, THINK OF IT AS THEY’RE TRYING TO BE WALMART, WE’RE TRYING TO BE STARBUCKS. SO, SUPER FOCUSED ON ONE THING THAT PEOPLE ARE VERY PASSIONATE ABOUT.”
In My Opinion
To be quite honest and I don’t speak for everyone, but I do know that I utilize each service for specific reasons. I utilize Amazon for purchasing items that I don’t feel like going out to the store to buy. Prime is great for those that like quick responses to their order. Whereas I use Netflix for all, and I mean all, of my video needs. Amazon is more of a general store, the Walmart of the internet and Netflix is more like the the “mom and pop” grocery store of the internet.
More than likely, fans are staying true to what they believe in. Reed Hastings was right when he said that Netflix was going in a more specific direction. Specificity isn’t a bad thing. This is technically just a business plan and/or tactic for those that see it as a close minded idea. But I mean, it would be cool if Netflix had a snack service too; A once a week deliver with different snacks to go along with all your binge watching needs… That’s all I am saying.
So Netflix may not have bashed Amazon, but they’ve definitely spoken some differing ideas and thoughts when it comes to business plans. The great thing about the world? No one business has to agree with any other business or idea that a business has. Netflix feels as though a specified business plan is what is right for them and that’s ok. What do you think about Amazon and their business plan? What do you think of Netflix and their business plan?