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Did Netflix Break Amazon? – Darlinez News.

<p> &lbrack;ad&lowbar;1&rsqb;<br &sol;>&NewLine;<&sol;p>&NewLine;<div>&NewLine;<p>Netflix did not just beat expectations for the number of subscribers it added in the fourth quarter&period; It crushed them&period; The company had forecast it would add 4&period;5 million&period; The number turned out to be 7&period;7 million&period; That put paid membership worldwide at 231 million&period; By most measures&comma; that is the highest paid subscriber level of any streaming service worldwide&period; The increase came at the expense of other companies&period; Amazon is at the top of that list&period; Its total subscriber count is estimated to be 200 million&period;<&sol;p>&NewLine;<p>One statistic about the streaming business is not good for most streaming companies&period; The average American has 3&period;4 services and pays an average of &dollar;8&period;53 monthly&period; Only two services have massive libraries of movies and TV shows&period; These are Amazon and Netflix&period; &lpar;Click here for the 25 best original Netflix movies&period;&rpar;<&sol;p>&NewLine;<p>Why are Amazon and Netflix at the head of the industry&quest; One is that they were early into an industry about a decade old&period; They got footholds before Disney&plus;&comma; Apple TV&plus; and several smaller competitors hit the market&period; Netflix pioneered the market in 2007&period; Amazon Prime launched around the same time&comma; but it did not have a legacy DVD mail to feed its new business&period;<&sol;p>&NewLine;<p>Amazon Prime Video had the huge advantage of being bundled with Amazon’s Prime service&period; It is free&comma; in most senses of the word&period; Prime members get free shipping&comma; special shopping deals&comma; music and cloud storage&period; Video is simply another benefit&period;<&sol;p>&NewLine;<section id&equals;"email-subscribe" class&equals;"section section-email-sub single-email-sub"><&excl;-- div&period;svg-icon --><&sol;p>&NewLine;<div class&equals;"container">&NewLine;<div class&equals;"subscribe-message" style&equals;"line-height&colon; 1&period;3&semi;">&NewLine;<p>Get Our Free Investment Newsletter<&sol;p>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;p><&sol;div>&NewLine;<&sol;section>&NewLine;<p>Amazon and Netflix can afford to produce new shows&comma; movies and series with their own money&period; They spend more than most traditional studios do&period; While this is a differentiator&comma; since both produce big hits&comma; the library size is critical to subscribers&period; Many of the videos in these libraries are drawn from other media companies&period;<&sol;p>&NewLine;<p>Netflix grew at the expense of another service&comma; or perhaps several&period; It is unlikely these were the smaller vertical programming ones with limited libraries&period; This leaves Amazon as its only real competitor&period; And there is little reason for people to subscribe to both&period;<&sol;p>&NewLine;<p>&Tab;&Tab;&Tab;&Tab;<&excl;-- &num;post-footer--><&sol;p><&sol;div>&NewLine;

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