Why Amazon's MGM Deal Is Bad for Netflix

Amazon's (NASDAQ: AMZN) blockbuster acquisition of MGM Studios for $8.4 billion could cause headaches for rival Netflix (NASDAQ: NFLX) as it creates a much more formidable competitor in the streaming arena.

After Netflix added fewer than 4 million new subscribers in the first quarter and said it expects to add only around 1 million in the second, analysts believe Amazon's movie deal makes it imperative that Netflix show it can resume growth in the back half of the year.

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Source Fool.com