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Reebok Men's Ultra Speed Awesome Blue, Met Sil and Wht Running Shoes ... … #Amazon

And the customers utilize more of our services." This fact could give Amazon a structural advantage over competitors like Netflix. Amazon doesn’t have to sweat the margins, and is set to spend an estimated $4.5 billion in 2017 competing against Netflix for both customers and content. "Because we have this unusual way to monetize the premium content, we can charge less for the premium content than we would otherwise have to charge, if we didn't have the flywheel spinning to help sell more shoes," Bezos said. While Hastings might want to characterize Netflix as a "specialty" play in relation to Amazon's entire sprawling company, in the video space, Netflix is actually very broad. Netflix wants everyone in the world to be a subscriber, and will spend billions and billions of dollars per year to get there ($6 billion on content in 2017). Hastings is completely correct that Netflix needs passionate fans that have an emotional connection to its brand, but it’s not as if Netflix is putting out a specialty video service for art-house film buffs, like FilmStruck. Its shows and movies, taken as a whole, are meant to have broad appeal. Amazon and Netflix are bidding against each other on shows and movies, and they are competing for your watching time. The more compelling argument isn’t that Amazon and Netflix are competing on different fields, but rather that there will be enough room for both of them. There’s a lot of evidence that people who subscribe to Amazon Prime are more likely to subscribe to services like Netflix and Hulu as well.

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