Amazon To Purchase Netflix? - High-Def Digest Forums
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Old 07-14-2009, 05:11 PM
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Default Amazon To Purchase Netflix?

Is Amazon interested in purchasing Netflix?

http://www.highdefdigest.com/news/sh...e_Netflix/3056

Personally, my money is on Microsoft. They've all ready got crossover on the board.
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Old 07-14-2009, 05:37 PM
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That analyst quoted makes a very good point - "Suddenly in a whole bunch of states Amazon finds itself taxable, it would kill their core business. He also said "Amazon stopped ads in several states to avoid having to pay sales tax", but actually what Amazon did was terminate affiliate programs in those states to avoid being liable for sales tax.

And I don't see where Netflix's streaming and mail rental really compliments Amazon business model. But it sure compliments Microsoft's streaming business and goals.
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Old 07-14-2009, 05:41 PM
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You beat me to it Cochise. This also makes me agree with the OP that Microsoft is in a better position and has the precedence for how to do this from a business continuity standpoint. Amazon also has a precedence as you mentioned, in the opposite direction. I don't pretend to understand the tax laws involved, though, so maybe there is a work around for them?
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Old 07-14-2009, 06:06 PM
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I would not be surprised if Amazon US aquires Netflix. Amazon UK and Amazon DE own a large stake in Lovefilm for rentals, already.

Amazon US has shipping physical recorded media via their drop ship network down to logistical science, for the most part. Their download service has also grown, due in large part, to very aggressive music download promotions. The rental market fills an important need for those who don't wish to download or own "files" or "buy" every movie on recorded disc. It's seems a perfect fit, for Amazon to corner this last media delivery model.

Netflix is also a competitor for digital media streaming, and Amazon recently opened a similar TV download store. The integration wouldn't need to be difficult, as the distribution centers for Netflix operate very similar to those used for dropshipping, and staff could easily be transferred, absorbed. Bet Blockbuster continues to kick itself for not acquiring Netflix years ago, when they had a chance. Amazon could become not only the biggest store on earth, but the 1 stop shop for all media aquisition (rental, download or physical).
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Old 07-14-2009, 06:36 PM
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If not for the tax thing I'd say go for it...but I don't want to pay Amazon money for taxes.
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Old 07-14-2009, 06:38 PM
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California sales tax (9.75%) and ANOTHER Blu-ray bump (you know it'll happen)?!? Sweeeet! I can't wait!
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Old 07-14-2009, 06:39 PM
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In order for Amazon to do this they must either be confident about their ability to somehow skirt sales tax issues, or they are predicting the imminent application of it anyhow and figure why not. I have a hard time believing they would find the added tax for consumers to be an acceptable addition to their pricing model.
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Old 07-14-2009, 06:40 PM
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Chicago's sales tax is 10.25%, and if Amazon was to begin collecting sales tax, that would severely cut what I bought from them.
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Old 07-14-2009, 07:32 PM
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DigitalBabe makes a good point - Amazon has a shipping center in Phoenix and doesn't charge sales tax in Arizona. They must setup the shipping centers under completely different, unaffiliated business entities. But if it could be done for disc mailing centers, you would think Netflix would have already figured it out by now. But then, there probably isn't the pressure to not be taxed in the rental business - all the other rental business, store or kiosk, have to charge tax as well. But there is intense competition in the online retailer industry to not charge sales tax.

And I gotta add: I imagine at this point Blockbuster has to be thinking "Would somebody, anybody please buy us out already!"
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Old 07-14-2009, 11:27 PM
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No clue why Amazon would want this dying business. Don't they already have On Demand? I live next door to a Blockbuster so I prefer their service due to proximity.
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