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Why Amazon’s Decision To Abandon Streaming Service Talks Was A Good One

3 December 2017

From Seeking Alpha:

Amazon has walked away from talks with content companies concerning putting together an online streaming service bundle, saying it can’t make the type of money it wants in the low-margin business.

U.S. broadcast and cable networks apparently still think they have the upper hand in the market, but the patient Amazon is more than willing to wait until pay-TV subscriptions continue to decline and the networks become desperate for another revenue stream. That time is approaching.

. . . .

I think in part, the negotiations with the networks was a trial balloon by Amazon to see where they were at with the traditional bundle business model. The obvious conclusion is the networks will continue to stubbornly adhere to it until they are forced out of it by lack of demand.

As mentioned above, at that time they will have lost their superior bargaining position, and are likely to get hammered in content negotiations in the future. It’s a matter of when, not if it’s going to happen.

This is good for Amazon in my opinion. My research shows that consumers continue to want a la carte options, and they will get it by voting with their dollars to cut the cord, or never buy it in the first place.

Link to the rest at Seeking Alpha

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One Comments to “Why Amazon’s Decision To Abandon Streaming Service Talks Was A Good One”

  1. Just Another Curmudgeon

    This author has no idea what people outside his particular tech level do for entertainment. Cutting the cord works in some places where the streaming architecture and OTA bradcasting will provide enough content, but it sure as [redacted] doesn’t work here where I live.

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