The Little Understood Competitive Advantage That's Propelling Amazon Studios
Netflix (NASDAQ: NFLX) may vastly outnumber Amazon.com (NASDAQ: AMZN) when it comes to Emmy nominations -- 91 to 16 for the current competition -- but there's one thing the streaming king lacks that Amazon Studios has in growing abundance: Oscars.
According to Box Office Mojo, the studio's backed films have earned eight Oscar nominations and taken home three statues, all of which were earned last year: original screenplay and best actor for Manchester by the Sea and best foreign-language picture for The Salesman. Betting on high-quality, low-budget independent films can be incredibly lucrative if you're fishing for winners with buzz-worthy potential. Amazon has become as good at finding and funding these sorts of properties as Netflix has been when it comes to TV originals.
Does this really matter if you're an investor? Actually, yes, for two reasons. First, because Amazon Studios is a hook into the overall Amazon platform. Second, Walt Disney is just the latest studio brand to create its own streaming service for delivering content over the top of both Netflix and Amazon. Backing films that not only earn at the box office and on-demand but also fuel ongoing engagement is essential to Amazon Studios' long-term growth and ability to produce profits for the e-tailer.
Source: Fool.com
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