Can Amazon Take on Netflix and Succeed?

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April 1 (Bloomberg) -- Vuguru CEO Larry Tanz and Bloomberg’s Jon Erlichman discuss Amazon’s Primetime play on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

You expecting amazon to announce tomorrow.

Will there be hardware, a streaming component of this.

There has been so much talk about hardware.

In the lead up to the event they have had a couple of key content announcements.

You highlighted some of the original series in which ones will continue on.

One example of show that stars john goodman.

Today they make the announcement type two licensing.

You will be a will to stream that on amazon.

At least on the video content strategy side, there are three parts of it.

They want people to use that service so they will buy movies and tv shows the same way they do on itunes, but if you want scale in the business, make what you have a destination, you have to have original destination.

They have cut a lot of licensing deals.

Nickelodeon where they have shows.

Pay money.

Beginning of the original shows, not a lot of people can name a single amazon purdue show . larry, why hasn't amazon been able to make the hits netflix has got home like i think amazon has come out incredibly strong -- has come out incredibly strong with the first wave of shows.

Netflix has been in the video streaming business for several years in amazon has just jumped into it.

I think you will see some of the shows start to pop.

I think it is a pretty strong for showing.

Q we have seen netflix a there is rising content costs.

They are spending not what traditionally we see them spend but more akin to what cable companies spend.

They are sprinting premium cable dollars for programming and one reason why quality is so high.

And another reason why there is another set of competitors on the fireside side and could drive content side of.

-- up.

Put the software side -- hardware side out there.

If they come out with a set-top box, they will compete with google comcast.

Talk to us about the competitive landscape and where they might fit in.

You have to befriend amazed -- frenemies.

They have to maintain the relationship.

A lot of people have wondered if you see a box of the will netflix be available on it?

It is one of the most strained services out there.

I think amazon has to realize you can have a box in business tied to that and can build out your streaming service am a which i think they have been doing for a few reasons.

I think it helps the prime offering, which people like because you get free shipping.

Video is a big part of that.

People are buying fewer dvds these days.

If you can get a robust service like the video service they have been building, maybe that is the way to save the business that arguably has been in decline because people do not necessarily go to amazon to buy as many dvds as they once did.

They're more likely to get digital.

Talking about higher-quality or cable like contact, is that about production value and more money spent in production and more likely to have an economic impact on the unions in l.a. and whatever it takes to make the show look prettier?

It is about production value and talent.

All for house, which amazon ridden for a second season.

This is comparable to any show you will see on hbo or showtime or fx.

I think it balances out in terms of production talent, who stands out to you that makes you confident their shows can be hits, even though they have not been hit yet?

There is a creative team led by roy price that comes out very strong.

They will have five adult series going this year.

That is comparable to a reasonable sized cable network.

Just than year, a little over one year, they have mounted five series, the quality of which is very strong.

Do not forget about the kindle in this whole equation.

We are talking about a potential streaming device them up on one product on the front page of amazon every day and has been since it launched, and that is the kindle.

When you put millions of these tablets in people's hands amid the ability to give them original programming in conjunction with the prime subscription is a very powerful tool in the arsenal.

I think just the ability to offer exclusive original content on the kindle is a big selling point for that as well.

Larry penn, ceo of the guru.

Thank you very much.

This text has been automatically generated. It may not be 100% accurate.

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