Amazon is aggressively trying to set up exclusive content deals and is willing to pay more for them than NFLX, as the EPIX deal showed lately. Unlike NFLX that relies on streaming to make a living, Amazon's model for Prime is that of a loss leader, making up the difference in more retail sales. Granted, NFLX has a first-mover advantage in the business but AMZN has a bigger bank. It will be an interesting race. Another formidable competitor in streaming is Hulu, which is partly owned by Disney, NBCUniversal and Fox. Although rather small still, it's offering streaming service at the same price point as NFLX and (being owned by the studios themselves), it has a higher potential for quality programming.
Are these complementary relationships strong enough to undermine the stand alone streaming business model?