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Why Amazon is spending so much to rival Netflix

“Content is a difficult enough business to turn a profit, but Amazon’s key advantage is that its business is so incredibly diverse. From Amazon Studios to Amazon Web Services to its retail operations, any division can make a profit that raises all of the other divisions. For Amazon, the tide indeed does raise all ships,” said Glenn Hower, a senior research analyst with Parks Associates.

From the article "Why Amazon is spending so much to rival Netflix" by Elizabeth Weise.

Previously In The News

Roku IPO: Shares jump 68 percent as investors bet firm can fend off rivals

Analysts say Roku has shown great upside by diversifying its revenue away from chiefly hardware to partnerships and advertising over its platform. "Over the past two-and-a-half years, Roku has expa...

Mozilla Trumpets Altered Reality Browser

Virtual reality needs its own kind of Web browser because the Web currently is designed for 2D, said Hunter Sappington, a researcher with Parks Associates. "As solutions like Mozilla's become more...

Nearly 3 million subscribers ditched DirecTV last year. Will AT&T do the same?

But as it races to keep up with Netflix and Disney, AT&T increasingly has treated the satellite business as something of a relic, akin to rabbit-ear antennas. “They are at a crossroads,” said Steve...

CuriosityStream Expands Its OTT Video Model

The experimentation with business models can help draw new subs and provide a point of differentiation, added Brett Sappington, senior director of research at Parks Associates . He said three SVoD...

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