Amazon can buy MOVIEPASS to overtake Netflix

in #investing7 years ago

Amazon has conquered retail space including Macy's, Best Buy, Target, etc. It is even attempting to conquer the pharmacy market, causing stock price of CVS, and Walgreen to drop. However, it has miserably failed to defeat Netflix as Netflix continues to grow subscribers, and its stock is making new record high.

How can Amazon conquer Netflix then? One brilliant way would be to acquire MOVIEPASS, then bundle the service with Amazon Prime, which comes with Amazon Prime Movies similar to Netflix, and charge a bundle price. As a result, Amazon Prime members would be able to not only watch Amazon Prime movies online, but also watch newly release at movie theaters across the United States through MOVIEPASS. Also, with Amazon's resource, MOVIEPASS can expand its partnership much faster, and revolutionize the movie watching for the coming era both domestically and internationally.

It is important to point out, Helios and Matheson Analytics (Nasdaq: HMNY) currently holds a 53.7% pro-forma stake in MoviePass after increasing the purchase price of its investment to $28.5 million. Thus, in order for Amazon to buy out MoviePass, it has to buy out Helios and Matheson Analytics first.

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