It’s not just about Apple and Amazon, but the whole entertainment industry has been hit by a wave of consolidation.
The big three (Apple, Amazon, Netflix) are the dominant players in many sectors, with Netflix and Apple both having been among the biggest losers in 2017, according to research firm comScore.
ComScore, which tracks the industry, noted that Netflix was the most profitable platform in the US last year.
So where does that leave the big three?
Well, the big two (Disney and Universal) have both seen significant losses, with Disney’s share of the US entertainment market shrinking by over 35 percent since 2016.
Disney has lost more than 25 percent of its market share, while Universal has lost nearly 19 percent.
As for Netflix, the streaming giant has lost 25 percent in its market value, and its losses in 2018 are expected to be even more pronounced.
In 2018, Netflix’s market share of US households is forecast to drop from 35 percent in 2016 to 19 percent this year.
The biggest loser in the consolidation is Amazon, which has seen its market shares plummet from over 60 percent in 2017 to just under 40 percent today.
Amazon is currently losing around 10 percent of their total revenue, and analysts are predicting that it will fall further this year as it struggles to survive on the back of Amazon Prime.
Netflix is also experiencing a decline, losing nearly 14 percent of revenue in 2018.
But with so much at stake for the companies involved, we might not see a complete end to the consolidation anytime soon.
While Netflix’s stock is expected to lose about 7 percent of market value this year, its market cap will be about $5.5 trillion.
For Netflix, that’s a big number to hit, especially as Amazon and Apple’s market cap is still expected to grow by another 10 percent this financial year.