Amazon
is always looking for new income streams or more to the point, new loss
leaders. They are the most diverse
company in the world in terms of what they sell, what they make, and the
services provided. The only problem is
this: They lose money and in the process, tear up the economy of the industries
they touch. Movies and Hollywood are up
next.
It announced
its plans to produce a dozen big-screen films this year. However, to do so, their budgets will be
limited. But that won’t stop them from messing with Hollywood’s pay scales and
formulas.
Amazon
wants to release movies into theaters and then one to two months later make
them available for streaming for free to its 40 million prime subscribers ($99
per year). It will beef up its
entertainment business, which expanded to television successfully. It just won a Golden Globe.
Amazon
is trying to be all things to all people and in the process of building marketshare and huge revenues, it piles up substantial losses. But as long as Wall Street is supportive of
the stock, Amazon can keep looking to cannibalize industry after industry. The vultures smell blood and are going for
the kill.
What’s
left for Amazon to conquer?
·
Broadway
plays
·
A
radio network
·
Sell
life insurance
·
Create
a cemetery and offer discounted plots
·
Breed
dogs and cats
·
Train
police departments
·
Staff
schools with teachers
Anything’s
possible when you don’t have to turn a profit.
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