New ceo at hulu.
We want to bring in our analysts and our bloomberg contributing editor for venture capitalism investing.
Paul sweeney, that is going to be big, right gekko to see how many subscribers they added?
Netflix has been a spectacular stock, but from the perspective of a lot it is clearly out -- clearly a momentum stock driven not by revenue, but by subscriber growth, and it is important for them to maintain growth domestically and internationally.
Can they keep that momentum going with so many competitors?
I do not think there is much doubt that they can.
It is a remarkably secular story of transformation and the way that people consume media and entertainment products.
Across- the-board, you tipped off the top, watching bloomberg tv on ipad, it is a thing more than five or six years ago.
If you talk to the people under the age of 25 it is interesting how many people say that cable does not even enter the picture for them.
This transformation has already happened for the next generation of consumers.
It is, the pie keeps getting bigger, to your point, netflix used to be the only game in town, but as you know they are becoming less and less the only game in town.
They are not the only game in town, but if you look around at, say, amazon prime, a remarkable service with content, adding more and more of their own to it, but it is still not pushed very hard.
Amazon could do a much more effective job as positioning's -- in positioning themselves as a competitor.
Until they do as good a job as netflix and putting themselves out there, this is a marketplace that is plenty big for hulu, amazon, netflix and others, so i do not think that is the issue at this point.
I was kind of curious why amazon does not push that hard and why their video offerings, while plenty, are not advertised as hard as other products.
From the perspective of amazon the video entertainment business is not their core.
Electronic retailing, that is where all their value comes from , i think they view the video subscription business as part of the amazon prime service that guarantees overnight delivery, so on and so forth, it is just a way to really push the delivery service as opposed to making it a core business.
Looking at hulu, there is a company that has had a tremendous amount of uncertainty . they have had their own problem's. is it working, though?
Amazon, are they finding that people who are subscribing to their videos, that it is working and generating revenue on the other side?
Wax they believe that it is, absolutely.
A great business for amazon, extremely profitable and -- extremely profitable revenue stream.
Consumers in the u.s., in particular.
It is an enticement in the membership.
But it is not a core business, the way it is for netflix.
You are in agreement, piper jaffray?
Many people who use amazon prime do not even realize that video is on the service.
It is literally that much of a tangential piece of the service, which shows you where the upside could be in pushing it harder.
Just on a final note, paul, hulu, do you think with the new ceo in place are they going to start becoming a bigger player?
As paul was saying, i think that is one of the big issues for them down the line, who are going to be the owners?
How credible is the commitment?
With a new ceo in place, absolutely, they can credibly deliver most of the things as
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