first real competition to netflix incoming. Amazon will be rolling out very similar monthly service to netflix's instant viewing. The kicker is will be free as part of the amazon prime membership at $79 a year. Once rolled out, give amazon sometime to perfect the technology and content and netflix has a real battle on its hand. All of the netflix instant viewing content are older movies and tv shows, which is exactly what amazon will have. So as long as amazon can execute on the technical side, i dont see why people will not switch to it. Here's some early screenshot, apparently amazon added the service by accident for a few mins on some prime users accounts. http://www.engadget.com/2011/01/29/amazon-rolling-out-netflix-like-video-streaming-for-prime-subscr/
Looks like a solid pairs-trade setting up in the short NFLX/AMZN here at $46.68 last (1:1). The multiples should begin to converge now that the models are similar. I'll be selling that spread on Monday.
I'm a little surprised that based off of this information you're so quick to go long AMZN and short NFLX. I'd say there's a good chance that you'll do ok here, but NFLX is no tamed beast, and it doesn't do what it's told. I'd have a stop set up.
The haircut required amounts to a 3% allocation; and willing to take it to no more than 10%. Small stuff. You should see my OEX position.
looks like atticus is just testing the water. I would wait personally, dont think the correlation is there yet, considering it's just a very small part of amazon's business, it will be a while before it's launched, and even more time before it has any meaningful impact on netflix (if it happens).
I agree w/Jim Cramer's analysis of Netflix, <a href="http://finance.yahoo.com/news/Facebook-Could-Turn-Netflix-paidcontent-3749624395.html?x=0&.v=1">Facebook could turn Netflix into $400 stock</a>.
Taking 3 at +41 and walking away. Too costly to maintain in shares. I may re-enter with options if it trades 50+.