NEW YORK (TheStreet) -- The media has lost its ability to think for itself. Something happens -- whatever it is -- and intuition immediately fuels tweet after tweet and story after story of echo chamber regurgitation.
It's groupthink at its worst.
Almost to the person you get the same stale -- for want of a better word -- opinion on everything. Case in point -- the deal that brings select three-year old Home Box Office (HBO) (a division of Time Warner (TWX)) programming to Amazon.com (AMZN) Prime customers.
Here's what matters:
- The addition of some HBO programming makes Amazon Prime more attractive. Obviously. But you can say this about dozens of other improvements Amazon constantly makes to its ecosystem.
- The deal highlights the fragility of Netflix's (NFLX) business model. It also underscores what a horrible CEO -- despite his smoke and mirrors and seductive way with the media -- Reed Hastings is. Had he approached competition with HBO differently (e.g., with some humility), he might be getting this deal rather than Amazon. There's no question in my mind he would love to have it.
- Expect more of this type of thing from HBO. They're in the early stages of what will be/is a move fast when necessary, ever-evolving digital strategy.
Right now, in spite of all the competitors who are trying to eat its lucrative lunch, the premium cable service is crushing it.2014 will be go down as the year the media and the stock market's free love tryst with Netflix cooled and, quite possibly, ended. HBO will have the last laugh. That's what you should take away from this Amazon/HBO deal. It's not a Netflix killer, but it's a deep flesh wound. You should be able to ascertain the old and new media that operates from a position of strength and the one that only acts as if ... Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.
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