Amid record growth in quotes and quarterly earnings, Amazon has taken a new step in mastering the media market.
As part of the new development strategy, online retailer Amazon also plans to become a major media player - in addition to its previous merits. The company even intends to produce serials and movies. Recently, Amazon partners have become HBO and Epix . A month ago, Amazon made its dollar subscription cheaper than its main competitor, Netflix .
Another competitor of the company in this market is Google YouTube .
Amazon has launched a new video service, Video Direct , where users download content on their own and make money from advertising. Users of the Amazon service can download original content or licensed video and choose how they will earn it.
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“Think of it as a Trojan horse that will bring you to the kingdom of Amazon, in the heart of which is a huge store, says Peter Ksati , managing company of Manatt Digital Media Ventures . “It highlights how video has become a battleground in the IT industry.” According to him, Amazon does not seek to create a direct competitor to YouTube, but to attract new users with free video content, in order to convince them to switch to a paid subscription.
Megamind wrote that in April, Amazon refused to annually subscribe to its old video services, adding the possibility of a monthly payment of $ 10.99 for Prime , while a subscription to Prime Video would cost $ 8.99.
Standard Prime cost was $ 99 per year and included access to Prime Video, as well as free delivery in the US, along with a cloudy place for backups for music and photos. Despite the introduction of a monthly subscription, the annual will still be cheaper - $ 99 against $ 131.88 for the monthly Prime.
Limited access to such a subscription has been received by a number of users since 2012 as a potential opportunity to compete with Netflix and Hulu.
With the help of the new service - Video Direct - you can attract not only consumers, but also content creators - for Amazon, sharing revenue with them is cheaper than buying licensed content rights. According to the analyst of Wedbush Securities, Michael Pachter, the company spends about $ 3 billion on video content annually.
The likelihood of Amazon’s success on the media market is growing along with its quotes amid record financial results.
Amazon shares on the 10th of May on the Nasdaq Stock Exchange went up by 3.43% to $ 703.07 - a record in the company's history. Due to the growth of Amazon quotes, the Nasdaq index showed the maximum daily growth since April 13.
Since the beginning of February this year, Amazon shares have grown by a total of 46%, Bloomberg said. Due to the rise in quotations, the status of Amazon founder and CEO Jeff Bezos increased to $ 61.7 billion by May 11. With this result, he moved into fourth place among the richest businessmen in the world.
Analysts at investment company Sanford Bernstein raised the forecast for the value of Amazon shares to $ 1,000. As noted by Reuters, this is the highest mark in the US stock market.
At the end of April, Amazon shares at the opening of the Nasdaq auction on April 29 rose 10.17% after the publication of the company's quarterly reports.
Retailer sales grew by 28% to $ 29.13 billion. Amazon's net profit in the first quarter of 2016 reached $ 513 million. Financial results were higher than analysts' expectations. A quarterly profit was a record in the history of the company. In the first quarter of last year, Amazon suffered a loss of $ 57 million.
However, over the past four quarters, the company has remained profitable.
Another competitor of the company in this market is Google YouTube .
Amazon has launched a new video service, Video Direct , where users download content on their own and make money from advertising. Users of the Amazon service can download original content or licensed video and choose how they will earn it.
')
“Think of it as a Trojan horse that will bring you to the kingdom of Amazon, in the heart of which is a huge store, says Peter Ksati , managing company of Manatt Digital Media Ventures . “It highlights how video has become a battleground in the IT industry.” According to him, Amazon does not seek to create a direct competitor to YouTube, but to attract new users with free video content, in order to convince them to switch to a paid subscription.
Megamind wrote that in April, Amazon refused to annually subscribe to its old video services, adding the possibility of a monthly payment of $ 10.99 for Prime , while a subscription to Prime Video would cost $ 8.99.
Standard Prime cost was $ 99 per year and included access to Prime Video, as well as free delivery in the US, along with a cloudy place for backups for music and photos. Despite the introduction of a monthly subscription, the annual will still be cheaper - $ 99 against $ 131.88 for the monthly Prime.
Limited access to such a subscription has been received by a number of users since 2012 as a potential opportunity to compete with Netflix and Hulu.
With the help of the new service - Video Direct - you can attract not only consumers, but also content creators - for Amazon, sharing revenue with them is cheaper than buying licensed content rights. According to the analyst of Wedbush Securities, Michael Pachter, the company spends about $ 3 billion on video content annually.
YouTube is the largest video service in the world, its revenues this year will be almost $ 2 billion and, according to eMarketer, it controls about 20% of the video advertising market in the United States.Like YouTube, Amazon will keep 45% of its video advertising revenue. If the video is available on a paid model, the company will keep half of the money received.
The likelihood of Amazon’s success on the media market is growing along with its quotes amid record financial results.
Amazon shares on the 10th of May on the Nasdaq Stock Exchange went up by 3.43% to $ 703.07 - a record in the company's history. Due to the growth of Amazon quotes, the Nasdaq index showed the maximum daily growth since April 13.
Since the beginning of February this year, Amazon shares have grown by a total of 46%, Bloomberg said. Due to the rise in quotations, the status of Amazon founder and CEO Jeff Bezos increased to $ 61.7 billion by May 11. With this result, he moved into fourth place among the richest businessmen in the world.
Analysts at investment company Sanford Bernstein raised the forecast for the value of Amazon shares to $ 1,000. As noted by Reuters, this is the highest mark in the US stock market.
At the end of April, Amazon shares at the opening of the Nasdaq auction on April 29 rose 10.17% after the publication of the company's quarterly reports.
Retailer sales grew by 28% to $ 29.13 billion. Amazon's net profit in the first quarter of 2016 reached $ 513 million. Financial results were higher than analysts' expectations. A quarterly profit was a record in the history of the company. In the first quarter of last year, Amazon suffered a loss of $ 57 million.
However, over the past four quarters, the company has remained profitable.
Source: https://habr.com/ru/post/300726/
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