Does Netflix fear Amazon?

Amazon is the big, bad beast that every brick and mortar business fears. Of course, they have come a long way since their retails roots. One area they are growing in exceptionally well is streaming.

In a recent interview on CNBC's "Squawk Box" Netflix CEO Reed Hastings spoke on his thoughts about the retail giant.

In essence, Hastings is shaking in his boots.

He sees the big "A" as "awfully scary."
He didn't outright claim that Amazon was Netflix' biggest threat, but it was implied.

Hastings pointed out how Amazon was basically defying the laws of gravity in business.

"Everything Amazon does is so amazing. How are they doing so many business areas so well? They are trying to repeal the basic laws of business. Unlimited capabilities.They are awfully scary I would say."

Netflix, however is prepared to go to war with competitors by stepping up their budget for original content. Since they have enjoyed such success with shows like "House of Cards," "Orange is the New Black" and "Narcos," Netflix believes they have much life left as the leader in the streaming industry.

He noted that they are preparing to spend upwards of $6 billion to increase their original content in 2017. Beyond that, he mentioned that budget would go up "alot" in the near future.

That figure has some speculators wondering if their base price of $7.99 would still be intact after eight years of holding stable. Hastings did not indicate whether they would the bump the subscriber price to accommodate the rising budget. He simply made a point to recognize his want to satisfy the customer base with more content.

"As we grow the membership base, we want to grow the current budget. There are so many great shows we don't have yet. We are going to continue as we grow the member ship base to try and get more shows and more movies."

Even with more cable subscribers cutting the cord daily, and a growing number of streaming options available, Hastings remained steadfast in the growth of his company.

The rate of cord cutting hasn't affected the company's projected growth. Netflix isn't the reason why people are quitting cable. Very few people have cut the cord. We have seen maybe 2 million or 3 million of 50 cut the cord. We don't think of it as a big overlap that we are driving cord cutting. In general, it is like 2 to 3 percent per year, like broadcast ratings over the last 30 years. It will take a slow, secular decline, then they will adjust the economics."

Hastings himself claims to have an "obscure" taste when it comes to his choice of flicks. His must watch list includes Swedish fare like the under-the-radar movie titled "Force Majeure." This flick is a "dramady" centering around a family that must rebuild after the patriarch leaves his family behind amidst a natural disaster. Wow, what a coward. Lol.

If you want to check out the interview- and see the fear in Hastings eyes when talking about Amazon, Crypto Gawd has provided you a link (courtesy of CNBC). Hope you enjoy it folks! Crypto Gawd, OUT!