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Netflix CEO: Amazon Losing Up to $1B a Year on Streaming Video


Reed Hastings says that, one day, Amazon will provide real competition for Netflix.

But the Netflix CEO says Jeff Bezos will have to spend a lot of money before that happens: Hastings says Amazon is losing between $500 million and a $1 billion a year as it acquires streaming video content rights.

Hastings says he generated those numbers based on the value of the content deals that Amazon won when the two companies competed head to head.

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Source: All Things D

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2 Comments (Open | Close)

2 Comments To "Netflix CEO: Amazon Losing Up to $1B a Year on Streaming Video"

#1 Comment By Felix Lee On November 17, 2012 @ 12:01 am

I don’t think Amazon will abandon the streaming video service just because it is currently losing money. They will just find some way to overcome the obstacles and then Netflix will be facing some tough competition, as Reed Hastings has predicted.

#2 Comment By javi On November 18, 2012 @ 1:38 pm

I’m nut sure if these numbers are a bit inflated or not, but all I see is another figure showing Netflix heading in the wrong direction. Too many price increases, too many changes in the business model, and of course, the Qwikster debacle are all reasons I switched from Netflix to DISH. I wanted live sports, news and features anyway, and DISH’s new Blockbuster @ Home movie package is MORE than sufficient for my family’s movie needs. A DISH coworker told me about it, and I get access to over 100,000 movies, games and TV shows. And, as it were, it costs less per month than Netflix.