Netflix & Amazon: Fundamentally different strategy

Netflix CEO, Reed Hastings’ strategy is fundamentally different from Amazon’s boss.

In a recent interview, Hastings was asked if Netflix would enter the short 10-mins format like Quibi – and he said no.

In the same interview, he was asked if Netflix would enter the game streaming market like Google Stadia or individual content creation like Instagram – he once again said no.

His answer was – “We’re really focused on doing incredible series and films.”

This focus has enabled Netflix to invest $8 Billion in content this year.

Imagine if like Amazon, Netflix was trying to expand beyond its core product – take all the profits and invest in entering new markets. They wouldn’t have the same capital to dominate streaming.

On the other hand, Amazon is virtually expanding into every business. You can rely on Amazon to keep your kitchen stocked with groceries, your closet stocked with clothes, your business running with cloud, your brain smarter with audiobooks and your TV exploding with content.

By experimenting and executing a ton of ideas, they’ve managed to compensate their low-margin businesses with highly profitable ones and overall, created massive leverage to enter even more markets.

Two fundamentally different strategies.

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