With so much competition in the streaming video business, it’s only natural that Netflix (NFLX) is feeling the heat. In an interview with The Wall Street Journal, Netflix CEO Reed Hastings wasted no time in sharing his thoughts on why his company’s streaming video is better than Amazon’s (AMZN) Prime Video. Besides stating how Netflix has better algorithms in place to deliver recommended content and how the user experience is better because video is its only business, Hastings says that Amazon Prime Video is “a confusing mess” and that consumers don’t want lower prices that come at the expense of more available content.
“In the U.S., our content budget is about three times [Amazon’s], and we’ve got about three times more content. And what our customers tell us is they want Netflix to have more content, not to have two-thirds less at a lower price. That’s not that interesting a proposition for them. [Amazon has its Prime membership service] and it’s really about low-cost shipping, but why is video in there? It’s kind of a confusing mess.”
It’s true that Amazon Prime Video does have less video content, but Amazon is trying to broaden its services as more than just a channel for delivering content. Amazon wants to win customers with the entire package: Kindle Fire tablets and digital content — and hardware is something Netflix might never do.