Does Amazon's Viacom deal make it a real competitor to Netflix?

The e-tail giant tries to woo streaming video fans by signing a deal for dozens of TV shows, including Jersey Shore and Dora the Explorer

More bad news for Netflix: On Wednesday, one of the streaming service's chief rivals, Amazon Prime, announced a lucrative new partnership deal with cable company Viacom. The blockbuster deal lets Amazon stream programming from Comedy Central, MTV, and Nickelodeon — including shows like Jersey Shore, Chappelle's Show, and Dora the Explorer — and increases Amazon's streaming library to 15,000 titles. Considering Netflix's recent inability to hold onto crucial content partnerships with companies like Starz, does this deal signal that Amazon is poised to topple Netflix?

Amazon is certainly on the right track: "Amazon Prime is easily one of the best deals you can get online," says E.D. Kain at Forbes, giving customers streaming access to thousands of video titles and free two-day shipping on Amazon goods — all for $79 per year. "I'd gladly cancel my Netflix subscription" and just use Amazon if the latter's streaming library becomes as robust as Netflix's. And at the rate Amazon's going, that could happen soon. "Netflix will need to drastically improve its streaming options if it wants to remain competitive."
"Amazon's Viacom deal puts pressure on Netflix"

But Amazon needs to unbundle streaming from Amazon Prime: This is undoubtedly a huge coup for Amazon, says Ryan Lawler at GigaOm, particularly because Nickelodeon programming will win over subscribers with kids. But if Amazon really wants to compete with Netflix, it needs to unbundle its video streaming service from Amazon Prime. Perks like free two-day shipping are nice, but "not everyone is interested in that part of the offering." Amazon needs a standalone streaming service.
"With Viacom deal, Amazon looks like a real competitor to Netflix"

And it must get into the original content business: Amazon and other streaming sites are certainly encroaching on Netflix's dominance, says Sarah Perez at TechCrunch. But Netflix is wisely branching out in ways that its competitors are not. The company is funding original programming — it just debuted its first scripted series, Lilyhammer — which means it doesn't have to rely entirely on subscription deals to woo customers. "Amazon will eventually have to do the same to continue to compete in the space, let alone come out on top."
"Amazon & Viacom announce streaming video deal"

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Can Verizon and Redbox conquer Netflix?

The telecom powerhouse and DVD rental kiosk giant are teaming up to offer a movie-streaming and DVD subscription service. Sound familiar?

Verizon and Coinstar's Redbox DVD kiosk unit are teaming up for a subscription video service that offers both physical DVD rentals and digital video streaming for a monthly fee. "Isn't there some company that already does both of those things?" says Brad Tuttle at TIME. "Ah yes, Netflix!" After Netflix's disastrous 2011, Verizon and Redbox are just the latest businesses "trying to kick the company — and steal away customers — while it's down." And they should be a formidable team, especially after Redbox — already the No. 1 U.S. DVD renter — said Monday that it's buying the kiosks and DVDs of rival Blockbuster Express, giving Redbox "more locations than McDonald's and Starbuck combined," Redbox marketing chief Gary Cohen tells Fast Company. Is this a mortal threat to Netflix?

Netflix is in trouble: Any way you slice it, this is "bad news for Netflix," say Kevin Parrish at Tom's Guide. Combine Redbox's convenience — its kiosks are "seemingly on every street corner" — with Verizon's digital network and access to top content through its established ties to Hollywood studios, and you have a potential "Netflix killer." Verizon and Redbox are tight-lipped about the details, but they promise a service you can watch anywhere, at any time, on any media device.
"Verizon chooses Redbox for video streaming service"

But Verizon-Redbox isn't Netflix's only rival: "This partnership sounds relevant right now, but check back at the state of this industry" when Verizon-Redbox launches its service, supposedly in the second half of 2012, says Rick Aristotle Munarriz at The Motley Fool. By that time, Amazon should be offering a considerably cheaper movie-streaming service, and "it's going to be hard for the Verizon-Redbox alliance to match Amazon on price or Netflix on catalog breadth." Until Verizon-Redbox opens up about their plans, "Netflix is better off worrying at what Amazon is up to."
"Can Redbox and Verizon kill Netflix?"

The devil's in the details: The movies and TV shows available in Verizon-Redbox's digital library "will be the key to the service's success," or failure, says Tim Carmody at Wired. "After all, without competitive content, it's just Redbox — which more or less remains the same as it is — tied to a vanity digital video project from Verizon." Let's see if Verizon can really deliver the "broad and deep array of content" that it's promising.
"Gunning for Netflix: Redbox and Verizon to launch video service this year"

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