Amazon (Nasdaq:AMZN) has barely left the gate with its streaming content, and Netflix (Nasdaq:NFLX) hasn't had time to really respond, and they already have another major competitor emerging from the shadows, as Google (Nasdaq:GOOG) looks to add more value to their YouTube franchise by offering a subscription streaming video service.
Netflix has yet to explain how they're going to respond to the two giant companies entering the video streaming segment, as they don't have near the capital to compete head-to-head with the two in what will eventually become a commodity service competing on price.
While never in the best of graces with Hollywood, tinseltown knows they need Google, and will hammer out some type of deal, as reports are the search giant has set aside about $100 million to make content deals. Negotiations have also reportedly been going on for months.
Adding a subscription service to the existing advertising model for YouTube should make shareholders happy, who have pressured the company on associated costs which may be weighing on the share price of Google.
As for Amazon, thev've recently released a streaming video service to premium members, and will surely roll it out to others sometime in the near future.
NetFlix could get crushed in the crossfire between the two giant companies.
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