Netflix CEO Reed Hastings thinks 'everything Amazon does is so amazing'
- Author: Zachary Reyes Jun 01, 2017,
Jun 01, 2017, 18:00
Reed Hastings, Netflix's co-founder, chairman and CEO, acknowledged that Amazon is a very large and formidable rival - even as he praised the e-commerce giant as helping to grow the streaming-video sector. "I mean, everything Amazon does is just so fantastic".
Hastings said Netflix is spending more money, and its budget is also going to go up in the future. Much like Netflix, Amazon has been acquiring rights to original TV shows and movies in recent years, though it's still expected to spend about $1.5 billion less on original content than Netflix's expected $6 billion this year. "The real impact around net neutrality would be on small firms, you know, the Netflix of ten years ago".
Among separate comments in the wide-ranging interview, Hastings confirmed that Netflix had "no plans" on news and sports. According to him, the industry is growing as people want to watch on-demand.
"It's been fantastic for us", he said.
"We saw higher subscription rates to Netflix from Amazon Prime than regular customers".
"They are awfully scary I would say", the CEO continued. "These are two winners of that description, Amazon with Prime and Netflix with its own service".
"We don't really want a fight with anyone", Hasting said in an interview at the Code Conference on Wednesday. And most recently, Netflix canceled The Get Down after only one season-a move that was unsurprising after the show's lukewarm reviews and massive price tag.
It's an excellent PR spin to add the caveat that there are just too many good shows, but the sentiment is still there: Netflix needs to cut back and focus on higher quality.
Furthermore, Hastings emphasized that Netflix has been keeping its base price for eight years although it increase the price for the HD and upper tiers.
Hastings said what Netflix won't try to do is to move into multiple businesses the way Amazon has. "Sometimes the establishment is clumsy when it tries to shut out the insurgent, and then the insurgent's role is to play that up, which we did". He said the company's subscribers continue to get all the content and enjoy unlimited viewing. "They got the festival director to threaten to pull us out, which got a bunch of press".