Could Sales Taxes Prevent Netflix And Amazon From Hooking Up?
from the the-taxman-cometh dept
The rumor that Amazon could buy Netflix is an old one, but it's getting some fresh attention today, following a note on the subject from a Wall St. analyst. Given that Netflix shares are slumping while Amazon's are soaring, it's not surprising that people are again talking this up. But what's most interesting is one of the reasons given by a Bank of America analyst on why the deal might not be in the offing. If Amazon were to buy Netflix, it would immediately gain a physical presence in 43 states, because Netflix has so many distribution centers. Hence, Amazon would likely be forced to charge buyers in those states sales tax, which something the company definitely doesn't want to do. For any deal to go through, Amazon would have to figure out a way to sidestep this issue, possibly by drastically consolidating these distribution centers; except that if this could be done without damaging the speed of the service, it would've probably been done already.






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Last time I bought from Amazon...
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Less distribution centers = Blockbuster Total Acce
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Re: Less distribution centers = Blockbuster Total
I buy from Amazon A LOT and never paid for sales tax, if they were to buy Netflix and charge taxes then I might have to go back to buying from Target (household stuff) and Fry's Electronics (tech stuff) more often.
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Re: Last time I bought from Amazon...
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I can't understand the comparison.
Yes, there is some crossover, with Netflix selling their old ones off, but that's all.
Frankly, I'd prefer that Netflix stay on their own. I have no problem with Amazon, but any time a company gets bought out, the policies change, and that can only be bad news for us Netflix customers.
EtG
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Re: Less distribution centers = Blockbuster Total
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Re: Less distribution centers = Blockbuster Total
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Amazon Downloads
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Re: Amazon Downloads
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Amazon buy of Netflix - a joke
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Re: Re: Amazon Downloads
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