Amazon and Netflix Merger is a Farce

Hot on the heels of the rumor suggesting that Microsoft

is

Netflix

, Amazon

is thought to be interested in buying the streaming video giant.

This is not the first time that this rumor has surfaced. Amazon has been interested in Netflix for more than a year (or so the

claim). But even at its peak, the company had very little to offer Amazon. Today, Netflix has even less. Netflix is no longer a leader of online content. The company uses its official blog to promote its most recent TV show additions, which are limited to

, Undeclared and the fourth season of

. While the former was a critical hit and the latter is somewhat of a success story for cable network FX, neither Freaks & Geeks nor Sons of Anarchy have what it takes to bring in the masses. Few people have heard of Undeclared, so it is unlikely to have a significant impact on Netflix's bottom line. These are not the kinds of content deals that will make Netflix attractive to Amazon. Regardless, some financial professionals believe that if a

is interested in turning the firm into an acquisition candidate, Amazon will come running. Two years ago, Netflix might have been a nice firm to grab. At that time, Netflix could have provided Amazon with content from Sony

, Disney

and other major corporations. That is no longer the case. Meanwhile, Amazon Prime has signed a

of its own

-- including one with EPIX -- giving the service a variety of popular films. Amazon has worked hard to build up its content library by acquiring its own content deals. It has not even hinted at the idea of obtaining content through an acquisition, which would be the primary benefit of a Netflix merger. Amazon would also gain millions of additional subscribers, but unless the company can find a way to convert them into Prime subscribers, the online retailer would not get what it wants. When Amazon started its Prime instant video service, the primary goal was to expand its customer base for Amazon.com. The free two-day shipping that comes with Prime subscriptions is actually used

than the Free Super Saving Shipping option that is available to all customers. This means that Prime customers are buying a

of items from Amazon. The Kindle Fire tablets were designed to accomplish the same thing -- to persuade customers to return to Amazon and spend more money. That strategy

. If Amazon was interested in renting physical goods, Netflix might be a valuable acquisition. If it could somehow use DVDs to steer consumers toward Amazon.com, the company would be a promising option. But Amazon does not need Netflix to fulfill any of its goals -- it is doing that all on its own. Netflix is better suited for a company that needs content (such as Microsoft) and/or subscribers (such as Hulu). In October Netflix announced that it had acquired

worldwide. At the same time the company announced

.