Amazon + Netflix
>> Thursday, March 4, 2010
Every few months a rumor pops up that Amazon will buy Netflix. There are a some good reasons for this from the business side - but I wonder about from the customer's perspective. Below are a few potential benefits.
1. Better Movie Data: Amazon owns IMDb (Internet Movie Database) which is a great resource for all movie related inquires, from films to actors to statistics. Netflix also has plenty of movie information, but it pales in comparison to IMDb. Combining IMBb's information with Netflix would in theory make a better integrated experience for movie fans searching for information.
2. Better Recommendations: Netflix sponsored a million dollar contest to improve its recommendation engine: if you liked X, you'll like Y. I routinely use this Netflix feature and find it very helpful. I've found a few good movies through it I never would have sought out on my own. That said, it still has plenty of room for improvement. I wonder if Netflix were able to take advantage of Amazon's DVD sales information what effect that would have...
3. Amazon Optimization: Amazon is the king of creating an easy to use online shopping/user experience. If Amazon could apply some of its skill to Netflix that wouldn't be so bad. Netflix's site is pretty good - from its browsing option to its Queue, however, it could be better. They could improve their Queue for example - allowing more customization and adjustment. Think about if a family, with different tastes share an account.
4. Instant Viewing: Amazon has a large DVD business but has not been successful in online streaming video sales. Perhaps a merger would shift their focus more towards offering online streaming thereby improving Netflix's current selection. This is a complicated area, but it would be nice.
5. Cross Media: To expand on #2, I don't see why recommendations have to only be confined to Movies/TV shows. What about expanding to include other forms of media such as books? Think about movie-tie in books. Someone who read Shutter Island might be more inclined to want to watch Shutter Island, or vice versa (although that's kind of an obvious suggestion). Not that it has to be the same title either. For example, I read an excellent book Gang Leader for a Day: A Rogue Sociologist Takes to the Streets, which I believe would be popular with viewer's of HBO's program The Wire.
6. Delivery: Netflix and Amazon are very quick and reliable with delivery. I wonder if they could each just learn from one another a little more and possibly even combine some operations what effect that would have...
7. Cross Packaging: Amazon Prime + Netflix? Occasional discount Netflix subscriptions being sold through Amazon? Netflix on the next generation Kindle? and who knows what else...
If you have any other ideas about the benefits of Amazon + Netflix please leave a comment. Thanks

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