Amazon lost 1,000 million dollars a year with Instant Video, Netflix CEO says
Netflix today probably not in its peak financially, but seem to be wasting so much money on their service Amazon Amazon Instant Video. And according to the calculations of Netflix CEO Reed Hastings, Jeff Bezos’s company loses between 500 and 1,000 million a year just acquiring content rights.
Hastings’s numbers estimated based on what Amazon paid for certain negotiations often competing head to head. And that spending will be maintained over time Bezos and his team while ensuring broadcasting rights continue to be a real and valid against Netflix, therefore, reed hastings acknowledges that Amazon Instant Video is one of its strongest competitors in the future, but that there is still time.
From Amazon simply responded with a terse “we do not comment on our investments,” which leads to think that the numbers should not ride Hastings far removed from reality that are beyond all speculation. It will be interesting to see what happens in two years and compare that with the projected future reality by the head of Netflix.
Link: Netflix CEO: Amazon Losing Up to $ 1 Billion a Year on Streaming Video (All Things D)Tags: Amazon, Amazon Instant Video, Netflix, reed hastings