Amazon denied that it plans to soon launch a standalone video-streaming service similar to Netflix, dashing--for now--the prospect of a true head-to-head battle between the rivals.
Brad Beale, who oversees Amazon's video-acquisition unit, said in an interview with GigaOm's Ryan Lawler on Wednesday: "The bundle of benefits that come with Amazon Prime make perfect sense to offer to customers. The way that Prime Instant Video is offered today--we're going to continue that approach at least into the near future."
Even Netflix believed Amazon might spin off a standalone video service. In Netflix's fourth-quarter earnings last month, the company wrote: "We expect Amazon to continue to offer their video service as a free extra with Prime domestically but also to brand their video subscription offering as a standalone service at a price less than ours."
Based on Beale's comments, I don't think we have to rule out ever seeing a spinoff video service from Amazon. He said it just wasn't coming "soon." Regardless, some observers still think Amazon has the money, audience and relationships in Hollywood to become Netflix's top challenger.