Market Currents

Amazon (AMZN) is losing $500M-$1B/year on its Prime Instant Video service, according to...

Friday, November 16, 2012, 4:19 PM ET
Amazon (AMZN) is losing $500M-$1B/year on its Prime Instant Video service, according to Netflix's (NFLX) Reed Hastings, who bases his (broad) estimate on the cost of content deals Amazon has won when competing against Netflix. Separately, Hastings has declared (in a clear message to Carl Icahn) Netflix will remain independent. Meanwhile, Amazon appears to have ended a test for a $7.99/month pricing option for Prime; its site is only showing the traditional $79/year option. (ChangeWave survey)

This Market Current was sent to 22,421 people who get email alerts on AMZN.

Get email alerts on AMZN »

Share this Market Current

Short URL:

Track new comments on this story

This news story has 3 comments:

mogando Comments (312)

So AMZN loses money on each KindleFire sale, then lose money on the Prime service ?? Do they make *any* money other than shipping books ?

16 Nov 2012, 04:28 PM Reply Like

Joe Eifrid Comments (235)

Last quarter they lost money. They gave guidance they may lose some this qtr. They only have a 1% operating margin as it is, and UPS and FDX are increasing their shipping cost by nearly 5% starting in January. Something will have to give. They have to raise prices some where.

16 Nov 2012, 07:36 PM Reply Like

scott trader Comments (2724)

nflx the poison pill that keeps on giving....scramble shorts .....Go Carl....

24 Nov 2012, 09:49 AM Reply Like

LATEST|

TODAY SO FAR|

YESTERDAY

Other date

DJIA (DIA) S&P 500 (SPY)

TECH ETFs IN FOCUS

Latest Tech Articles

Apple Getting Crushed In Most Important Battle
3:09 AM • Gary Bourgeault
Cisco Stepping On The Toes Of IBM And Hewlett-Packard
6:51 PM • John Mylant
Bear Of The Day: Aruba Networks
6:21 PM • Zacks Investment Research
Samsung's Galaxy S4 Supplier Cheat Sheet
6:08 PM • Todd Campbell
What's Bad For The Market Is Worse For Alcatel-Lucent
5:30 PM • Markos Kaminis
The Anniversary Of My Nokia-Ford Comparison
5:06 PM • Jacob Steinberg
Which Carrier Will Survive The Death Of Phone Subsidies?
4:51 PM • Kevin Greenhalgh
HP Could Double... Again
4:26 PM • Ashraf Eassa
Some Good Trends At Pandora Media
3:58 PM • Stone Fox Capital
The Future Of Pandora
2:01 PM • StockBaller
Cirrus Logic And The Apple Effect
1:47 PM • Gary Bourgeault
Salesforce.com Earnings Call: Is The Lovefest Over?
1:24 PM • Sunil Shah
Pricing Apple's Uncertain Future: A Scenario Model
12:45 PM • Stock Cat
Nokia Banks On New Lumias To Increase U.S. Windows Phone Adoption
11:42 AM • Trefis
Thoughts On Vringo's Response In Support Of Its Motion For Ongoing Royalties
11:37 AM • Alexander Maxwell