For those who think Amazon has the clout to steal away Netflix subscribers, the logic there isn't too easy to follow: the US$9 (RM35) price point for the new service simply isn't compelling enough to siphon away any meaningful portion of the Netflix sub base, and the Amazon library of originals and licensed TV shows and movies isn't substantially better, either.
It's more likely that Bezos is betting that Netflix subs are willing to pay for a second or third SVOD option (Hulu) than putting a dent in the competition. Parks Associates recently estimated that 52% of US broadband homes take Netflix-almost double what Amazon Prime has managed, and 14% for Hulu.
From the article "Netflix Need Not Fear New Amazon Prime Spinoff Service" by Andrew Wallenstein.
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Beyond that, AT&T also gets revenue by licensing those movies and TV series to other pay-TV providers and subscription Net TV services such as Netflix. "Video and entertainment will remain the key dri...
