Netflix earnings, subscribers and streaming growth have analysts drooling over a theoretical Amazon buy

It's total pie-in-sky speculation, completely lacking in serious evidence or even vague "sources familiar with the matter," but for some reason, after two and a half years of hard rumoring, analysts seem more sure than ever that Amazon is looking into a Netflix acquisition. Netflix just announced some pretty attractive quarterly earnings, along with some nice hard numbers: it added one million subscribers in Q4 to notch itself past the 12 million mark, and 48% of its customers streamed at least 15 minutes of video off of Instant Watch -- compared to 28% a year ago. The logic goes that Amazon's looking to position itself as a digital goods purveyor, and Netflix is doing a bang up job of that very thing. Sounds just fine to us, but if Amazon tries to lock us into E Ink Netflix streaming on the Kindle, some heads are going to roll. There's naturally no comment from Netflix or Amazon on the speculation.

[Thanks, Steve H.]

[Guy Posted Jan 29th 2010 11:33AM]

If it means more streaming content, I'd be down with it.

[zcubed Posted Jan 29th 2010 11:38AM]

@Guy

As long as Netflix stays the same or gets better I won't mind. Any corporate bullshit with raising rates or hindering DVDs(Free super saver shipping?) and I'm out.

[Guy Posted Jan 29th 2010 12:12PM]

@zcubed I'd be ok with an option that offers way more content for $2/ month extra or something, but that would have to open up a ton of back TV content, and I wouldn't want it to stagnate over time.

[NaJaKwa Posted Jan 29th 2010 11:37AM]

Something will happen to Netflix when this Stars movie streaming loophole gets patched by the Movie Industry. My hope is that monthly subscription rates don't balloon. Troubled waters could be ahead for Netflix. Sell high Netflix!

[daytripper Posted Jan 29th 2010 11:37AM]

"48% of its customers streamed at least 15 minutes of video off of Instant Watch"

So they stream porn then?

[CtrlBurn Posted Jan 29th 2010 12:07PM]

Nah, Squidbillies.

[Nerdtalker Posted Jan 29th 2010 12:08PM]

@daytripper You sir, won the best comment of the day award.

I just spat latte all over my screen from laughing. Win!

[Michael Kirschner Posted Jan 29th 2010 9:09PM]

@daytripper no the importance of watching 15 minutes or more means that people are trying out Watch Instantly and they like it so they stay watching it. Something like BD-Live on the other hand rarely breakes 15 minutes because it sucks (OK it does break 15 minutes if you count the loading screen)

[theNEOone Posted Jan 29th 2010 11:41AM]

This actually seems like a very rational merger from the corporate perspective, although as a consumer I can't think of any benefit to how I consume media. I watch Netflix on my Xbox360. I buy music from Amazon. Two formats (video vs music), two consumption methods (rent vs buy). Now, if Netflix had a digital rental format that let me download to my iPhone (and let me drop the iTunes store!!!), and simultaneously offered a consolidated way to manage both music purchases and movie rentals, then I'd see some benefit. But because of the DRM nonsense involved with rentals, I don't see this happening any time soon.


=|

[John H Posted Jan 29th 2010 11:41AM]

Paul Miller must not be a Netflix subscriber, or he'd know that it was called Watch Instantly.

[leonardo Posted Jan 29th 2010 11:51AM]

Netflix has facilities in each states.
If Amazon buys Netflix, does Amazon start collecting taxes in each state?

[leonardo Posted Jan 29th 2010 11:58AM]

@leonardo
I found the answer.
It doesn't have to collect taxes, if Netflix is a subsidiary (entity isolation).

[Toleraen Posted Jan 29th 2010 11:51AM]

I'd rather see Netflix acquire Gamefly.

[Oskiee Posted Jan 29th 2010 12:03PM]

@Toleraen

And charge an extra $3 a month for games. id be in blissful heaven if this ever happened

[Dandmcd Posted Jan 29th 2010 12:25PM]

@Toleraen Netflix is slowly working towards just a streaming based service, Gamefly has nothing they want. Now Steam or Direct2Drive on the other hand.

[JeremyBenthem Posted Jan 30th 2010 12:58AM]

@Toleraen
1. buy Gamefly for the physical business
2. buy OnLive for the Play Instantly service
3. ????
4. World Domination

[TheAmazingBman Posted Jan 29th 2010 11:53AM]

I don't think Netflix would go for an acquisition right now.

[nrb Posted Jan 29th 2010 6:14PM]

@TheAmazingBman

I hope you're right. I fear Amazon would want to alter the Netflix model somehow and completely eff it up. I really like Netflix and have for over a decade. I really don't want Amazon to start messing with them.

[jagowar Posted Jan 29th 2010 11:54AM]

Its an interesting idea but I'm not sure it would work well.... unless amazon kept the netflix model separate because it does not work very well with their current vod model. I actually like both services (netflix for the model) and amazon for its regular "deals" on newer content.

[(Unverified) Posted Jan 29th 2010 12:06PM]

I used to be a die-hard Netflix user but their pop-under ads all over the web made me cancel my subscription with extreme prejudice.

What a scummy thing to do. Is there anyone who isn't aware of Netflix by now? Why are they resorting to such dirty, spam-like advertising in a day when pop-under windows have been relegated to phishing and malware site operators?

[Teer1998 Posted Jan 29th 2010 12:12PM]

@(Unverified) +1 Hate the pop-under ads. I still stream Netflix, I wish I had your conviction.

[scooterbaga Posted Jan 29th 2010 12:43PM]

@(Unverified) AdBlock

[Sarcasme Posted Jan 29th 2010 12:31PM]

Why don't we have this stuff in Europe?

[eepyaich Posted Jan 29th 2010 1:31PM]

@Sarcasme In the UK, Amazon used to have their own DVD rental service. However, this was then taken over by "LoveFilm", which is the UK equivalent of Netflix (where, by equivalent, I obviously mean "similar, but not as good").

[KupoCheer Posted Jan 29th 2010 12:42PM]

Even if it's unfounded, it would make complete sense. Amazon has gotten into the business of digital content in a big way, and I think their current video download service is the thing that needs the most immediate improvement.

[Synergi Posted Jan 29th 2010 12:53PM]

What better way to complete with the iPad? Amazon brings out a color Kindle. They already have the biggest bookstore, add that to the biggest streaming of video content for a all you can eat price..plus they can toss on their rental service for added good measure. The only thing left is to buy out someone like rapsody and the could actually give iTunes a run for the money.

People like flat fees, not to be, not to be nickled and dimed for everything they want to see or hear.

[Paul Ryan Posted Jan 29th 2010 1:09PM]

As long as Amazon doesn't mess with it, I don't care.

[Bashere Posted Jan 29th 2010 1:20PM]

It's sky cake. not pie

[WilliamFoss Posted Jan 29th 2010 1:46PM]

I wish everything was Free :)

[logic thinker Posted Jan 29th 2010 1:48PM]

Netflix streaming is so overated n low quality audio n video. No thanx. It's 2010. I'll stuck to blu Ray quality. Anything else would be a step back in technology. There r so many poor souls that r just settling for low quality. It's keeping us Americans in the stone age. Insane!!!!!!

[Caprice0083 Posted Jan 29th 2010 1:59PM]

@logic thinker

Not if you have a decent connection and a nice computer hooked up to a flat panel tv. Every Netflix customer knows streaming isn't up to par with Blu-Ray and on top of that they offer Blu Ray rental. Sorry, rather play my cheap monthly fee and watch as many movies as I want than cuogh up 30 bucks for ONE BLU RAY, that price alone pays for my subscription for 3 months!

[VerizonGuy Posted Jan 29th 2010 2:14PM]

@logic thinker that may have been true up until Xbox/PS3 got Netflix streaming. I don't know why, but the quality is a lot better on those devices than on the web browser.

[Meekermoloko Posted Jan 29th 2010 2:10PM]

2009 Panasonic VieraCast has Amazon on Demand ... would that mean an update to that ... considering they say that they can't add Netflix onto them ... which is probably a bold face lie.

That's right... I said it.

[VerizonGuy Posted Jan 29th 2010 2:12PM]

Funny, I could just as easily speculate that NetFlix is about to buy Redbox.

[timmy2000 Posted Jan 29th 2010 3:37PM]

F-Netflix, I'm still waiting for The Hangover in Bluray, get your act straight before you start braggen!!!

[Co0ki3mon2t3r Posted Jan 29th 2010 4:58PM]

to bad Amazon blows..

[TonyXL Posted Jan 29th 2010 7:02PM]

Maybe Amazon will fix the muddy tearing Silverlight Netflix playback in Windows PCs.

[Johnathan Posted Jan 30th 2010 3:37AM]

@TonyXL - Maybe you have a bad connection or a hardware conflict or something. NetFlix streams beautifully on my old AMD Athalon 64 machine, way better than Hulu with Flash.

[jmflow Posted Jan 30th 2010 11:30PM]

If it weren't for my new BR player which streams Netflix instant view video I would be terminating my Netflix account. For the past 2 months, 2 out of 3 BR discs Netflix has sent me have been cracked. I'm making very slow progress down my queue I'm guessing because everyone else is getting cracked discs. The back and forth mailing of defective discs and their replacements must be slowing down everything. In the past I was able to view about 8 movies a month on average. Now it's down to about 3-4. Streaming may be the way to go for them because at this rate they won't have many customers in a few months.