First forays into digital video
The next few years saw both Netflix and Amazon push online video. In 2006, Amazon launched a digital video download service called Amazon Unbox (later rebranded as Amazon Video),2 while Netflix introduced streaming for its subscribers in 2007.
Netflix quickly expanded its offering, launching streaming-only services in Canada, Latin America, the UK, Ireland and Nordic countries in 2010. By the end of 2012 it was in 40 countries and had over 33 million subscribers for its streaming service alone.
Meanwhile, Amazon was beginning to show its intent to compete directly with Netflix. In 2011, it launched Prime Instant Video – bundled with Prime in the US – and purchased LoveFilm, a DVD-by-mail and video-on-demand (VOD) streaming provider with a presence in the UK, Germany, Sweden, Denmark and Norway.
The expansion of both companies pushed share prices higher. Netflix shares were trading at $92 by the end of 2012,1 while Amazon shares had reached $251.