Walmart and Google meet Netflix???.

Earlier in the week we had Google (GOOGL) and Walmart (WMT) getting together to begin a partnership that could rival Amazon (AMZN) , someday. Amazon, of course, closes on their acquisition of Whole Foods Markets (WFM) next week and has already revealed plans to discount prices for Prime members. Amazon Prime is the company’s membership  program that offers free shipping and a gazillion other benefits.  It sounds a lot like Costco (COST), minus the gazillion benefits.

The  value of Amazon Prime lies not in just the shipping and cost benefits but in those other gazillion items that come along with the membership. Amazon Prime Video is not the equal of Netflix (NFLX), yet,  as far as content but it’s not that far off. Amazon Music is a great service and, I think, compares favorably to the offering from Apple (AAPL). So, it seems that a collaboration betweeen Walmart and Google is a good starting point, but there needs to be something else. They need a third, maybe a fourth and that could be Netflix. Google plus Walmart plus Netflix. That’s a formidable combination. Think about that for a second. In one company, Amazon, you have the equivalent of three large, established companies.

Disney (DIS) announced earlier in the month that they are going to remove their programming from Netflix after 2018. We know that others will follow and the content available through Netflix will shrink over time. Netflix doesn’t have the deep pockets to make an acquisition to replace that loss of content but maybe Google does. Google has YouTube, so they have some experience in trying to monetize streaming video. A combination of Netflix and YouTube would make a decent entertainment option. It could work.!

DISCLOSURE: I do not personally own any of the stocks listed here and do not plan to take long or short positions in any of them. This article was written by me and should not be construed as investment advice. It is intended for information purposes only and should not be relied upon to make investment decisions. You should consult a qualified tax or investment professional to determine which investments are right for you.