Interesting theory: Amazon could buy Netflix, but wouldn’t want to buy the current business with all its shipping centers in places where Amazon doesn’t have to pay/collect sales tax. If Netflix spins off the discs first, then Amazon gets Netflix’s catalog, technology…and most importantly, the zillions of TV sets and set-top boxes that have the streaming client included.
Netflix split to set up Amazon streaming merger? | ZDNet
Netflix’s move to separate its DVD-by-mail service may pave the way for Amazon to buy the company, argues an analyst.
Comments on Google+:
Brion: Possible… but I’ve always found netflix’s streaming catalog to be insufficient as is… best of a bad lot I guess!
Me: Yeah. That’s the main reason we still have the DVD subscription: 80% of our queue isn’t available streaming. In this theory, the big win for Amazon would be the install base.
Brion: Yep… hell, with any luck Amazon can strong-arm better deals with the studios. 😛 But I’d still love blanket non-exclusive compulsory streaming licenses: if the content’s out there for sale to the public on little plastic disks, anybody should be able to stream the same material for a nice standard fee (like ASCAP etc’s public performance, radio, & streaming systems… but maybe not as annoying. The reason Pandora doesn’t let you choose exactly which songs to play is to comply with the hoops necessary to qualify for the compulsory licensing, since they presumably think they can squeeze more money for on-demand services. A couple years out of date, but good overview of the lay of the land there from JWZ: http://www.dnalounge.com/backstage/webcasting.html )
Me: Wow. That is profoundly screwed up.