Though summer blockbuster movies make big money, more and
more people are turning to the comfort of their own home to get
their cinematic fix. Why go out and spend a small fortune on
tickets and snacks, not to mention have to battle throngs of
fellow moviegoers, when you can watch something for cheaper and
without the hassle on your own television or computer screen?
That's the mindset that has turned online video services, like
those offered by
), into multi billion-dollar companies. It's also why other
) have decided to expand their services to include movies, or
other media services, that will cash in on the trend of
increasing numbers of people looking for home entertainment
So which online entertainment option is better for
Netflix vs. Amazon
In one corner we have
). The company was founded back in 1997 but really didn't gain
steam until recent years. As personal computers have really
become a staple instead of a luxury in most homes, and online and
video technologies continue to improve, Netflix's popularity has
As with most other things, people enjoy being able to control
what they watch and when they watch it. For a low monthly fee,
Netflix offers thousands of movies and television shows for
subscribers to watch. The company began as a DVD service, with
customers designing a list of desired DVDs and the company
mailing each selection to the home. However, now Netflix is
gaining much more attention for its Watch Instantly service.
Subscribers can logon to the website and have access to a large
library of titles that they can stream instantly on their
computer. And the company is diligent about adding new titles to
keep the selection fresh.
With 50% earnings growth, 50% revenue growth and nearly 160%
gains over the past 12 months, it's clear that the stock is a
favorite among investors. Just take a look at its fundamental
breakdown and it will become clear why this A-rated stock is one
In the other corner, going up against NFLX, we have
). Now you may be wondering about this matchup, after all Amazon
is still known primarily for its online bookstore. What do they
have to do with online movies?
The answer is "a lot." Amazon has come a long way from simply
selling discounted books online. Thanks to their numerous
partnerships, you can pretty much buy any retail item you can
think of from the site. And the company seems to constantly be
adding new services.
One of its latest is a movie-subscription service for Amazon
Prime members. The site now offers unlimited movie streaming of
thousands of movie and television titles at no extra cost to
Prime members. Amazon's online library hasn't reached the size of
Netflix yet, but they are definitely working hard to change that.
For non-Prime members, the site also offers customers the options
to rent or buy movies to watch instantly. And for customers
buying physical copies of movies from the site, Amazon has began
offering digital downloads of many films so that people to not
have to wait to receive their purchase in the mail to watch
Both NFLX and AMZN are good buys. But this fight also has a
clear winner in NFLX, especially if you're looking for a company
that really specializes in online video services.