While Netflix may or may not have gained paying streaming subscribers last quarter, they’ve clearly given up on the idea of peddling physical video game rentals. But, I have to wonder, if thinking games and given their current emphasis on digital delivery, might Netflix elbow into OnLive or Steam‘s territory at some point?
In regards to Netflix’s core video streaming competency, Amazon is reportedly rethinking their Prime Instant offering, currently bundled with a shipping discount program ($79/year), into something more directly competing with Netflix. From the New York Post:
Jeff Bezos and his team at Amazon are weighing a move to beef up the Web retailer’s video-streaming service — possibly carving it out as a standalone, subscription-based operation
Given the effort currently expended to license content, potential upside, and rumors that Amazon contemplated a Hulu acquisition, this isn’t so far fetched. If so, what might Amazon charge for a dedicated streaming subscription? I can’t imagine Netflix’s $7.99/month is sustainable as content licensing fees increase. Which we suppose is the price of success. And if it’s the likes of Netflix versus cable, the establishment has already won… as content owners such as HBO and ESPN tie arguably more compelling online entertainment to television or broadband packages.