Netflix CEO: Amazon's Losing Upwards Of A Billion Dollars On Streaming

These days, tech-savvy folks may be more inclined to stream a movie than going out for a Redbox rental. Your options are pretty plentiful, actually. There's Netflix, VUDU, Amazon, Hulu -- and that's just naming a few. Recently, Amazon has gone into the business of rivaling Netflix, but they're giving away tons of it for free to Amazon Prime members. Now, according to Netflix CEO Reed Hasting, Amazon is losing between $500 million and $1 billion per year in streaming. His guesses have some pretty good factual backing. He's basing the figures on the value of content deals that Amazon scored when his company went head-to-head in bidding.

Netflix itself spends over $2 billion per year on content, but it's unclear how much Amazon is spending. Will it pan out in the end? Hard to say, but there's no question that having access to that content makes the Amazon ecosystem that much more attractive on the Kindle front.
Via:  AllThingsD
Tags:  Amazon, video, Netflix
sackyhack 2 years ago

I don't get it. Is he saying Amazon is LOSING that much or SPENDING that much? There's a big difference. If it's the amount spent, obviously they're going to recuperate some of that by the fee for Prime. But if they're losing that much in addition to their expenditure, then yeah that's a problem. I think he should focus on his company's problems first rather than take jabs at Amazon. I'm a member of both, and neither side is winning to be honest in terms of content, but with Amazon I get the free shipping in addition to Streaming.

samwelaye 2 years ago

"Amazon has gone into the business of rivaling Netflix, but they're giving away tons of it for free to Amazon Prime members."

How the hell are they giving it away "free". You HAVE to be a paid prime subscriber to get them. How is that, in any way, free. Hell I got amazon prime free for 6 months with amazon student and I couldnt stream!

Nothing free about it

Achimel 2 years ago

I agree with samwelaye - I don't know about them giving it out for free. If I was to look into the streaming, it requires an upgrade fee of $39 per year. Which is cheaper than the $8 per month that Netflix charges. But $39 is only an offer to some people, not everyone I think. Given the two I would choose to pay for Amazon prime considering the free two day shipping however.

samwelaye 2 years ago

Achimel its only $39 for Amazon Student users, meaning people paying for credits and having a valid .edu email address. Otherwise, its 80.

3vi1 2 years ago

They've started pinching the pennies quite a bit recently. I noticed the other day that I will no longer be able to access the songs in my 'free' Amazon Cloud Player. I have to reduce it to 250 songs, or nothing will work. Oh well... I never played them anyway - might as well just delete it all.

Maverick814 2 years ago

I somehow highly doubt those numbers. Amazon isn't stupid enough to just have a money sink like that. Or if they are actually losing money by streaming they are making it up elsewhere with the Amazon prime subscription.

Post a Comment
or Register to comment