Netflix, Inc. (NASDAQ:NFLX) and Amazon.com, Inc. (NASDAQ:AMZN) are battling each other on the front lines of a new war within the tech industry.
Both companies are vying for the business of cord-cutters, or those who are moving away from traditional cable and movie rental service and pushing further into the digital content world.
A study published back in November indicated that Amazon.com, Inc. (NASDAQ:AMZN) is giving Netflix a run for its money in the world of cord-cutting. Of course Netflix, Inc. (NASDAQ:NFLX) still holds the lion’s share of the market, but Amazon is gaining on it.
At this point, Netflix has about 33 million subscribers globally, while Amazon has at least 3 million for its Prime service—still a far cry from Netflix’s number, but it’s still an improvement for the company.
The tech world has been ripe for a new tech rivalry just like the one that’s developing between Netflix and Amazon. As the Huffington Post points out, we stopped seeing Apple Inc. (NASDAQ:AAPL)’s “I’m a Mac” commercials which pitted it against Microsoft Corporation (NASDAQ:MSFT) more than two years ago.
Both Netflix and Amazon.com, Inc. (NASDAQ:AMZN) are going all-in as they fight for first place in video streaming content. Both of them are creating their own original series. Netflix has added four new series to its original “House of Cards” drama, which has done well in the ratings. And of course both have been leading the way in terms of online movie content.
Also both companies have more insight into what consumers are watching and when they’re watching because they can track data more precisely than any television network. Rather than relying on Nielsen data, which is very limited in what it can provide, video streaming companies have direct access to everything their subscribers do on their service. This will likely pave the way for more households to cut the cord completely and opt for less expensive streaming video content.
Netflix, Inc. (NASDAQ:NFLX) in particular stands out in its ability to know what subscribers want. The Globe and Mail highlighted the company’s process for determining its algorithms.
Using content taggers, the company is able to bring certain programs and movies to the attention of subscribers who will be most likely to be interested in watching them.