Amazon: Prime, Other Subscription Services Earn $6.4 Billion

For the first time, Amazon is revealing earnings from its Prime membership program as well as other subscription services, in a 77-page document. Up until now, the company has been tight-lipped on such numbers, leaving investors to wonder how these important services are faring. The last time Amazon revealed numbers, in April 2015, it detailed the profitability of its Amazon Web Services, resulting in analysts and investors bumping the company’s value upwards. Since then, shares in Amazon have more than doubled. Continue reading Amazon: Prime, Other Subscription Services Earn $6.4 Billion

Amazon’s Global Push Creates Direct Competition with Netflix

Amazon launched its global Prime Video service, pricing it under Netflix to compete in the subscription-video arena. This year, according to Cowen & Co., Amazon is on track to spend more than $3 billion on Prime Video content, compared with $6 billion by Netflix. In addition to its Amazon Studios originals, the program line-up for its international Prime Video offering will include hundreds of movies and TV shows, varying by country. Licensed movies include “Jurassic Park,” “Pulp Fiction,” “Gone Girl” and others. Continue reading Amazon’s Global Push Creates Direct Competition with Netflix

Amazon Expands its A La Carte Offerings with HBO, Cinemax

Prime video members can access premium cable content from HBO and Cinemax now that Amazon has introduced the channels to its add-on packs in Amazon Channels, which now features more than 70 add-ons available to subscribers willing to pay more each month. “HBO is an additional $14.99 per month, and Cinemax is $9.99 monthly, with both offering 30-day free trials,” notes TechCrunch (HBO’s standalone HBO Now also runs $15/month). “The HBO add-on provides access to HBO’s current hits and past hit shows and limited series, as well as their current licensed movies, and news shows. Likewise Cinemax provides access to their original shows, as well as movies.” Continue reading Amazon Expands its A La Carte Offerings with HBO, Cinemax

Amazon Reportedly Scouting for Live Sports Rights for Prime

Amazon, looking into the possibility of streaming live sports, has been in conversations with the National Basketball Association, Major League Baseball and the National Football League, as well as soccer, lacrosse and surfing leagues, say sources. The company’s idea would be to create a premium sports package that would be made available via its Amazon Prime, with the goal of bringing new members to the $99 per year membership program. Amazon could also market a “skinny bundle” of live sports channels. Continue reading Amazon Reportedly Scouting for Live Sports Rights for Prime

Walmart to Ramp Up Online Operation, Google Opens Pop-Up

Walmart told its investors that it was opening fewer brick-and-mortar stores in favor of investing in online operations, a strategy that was initiated when Walmart chief executive Doug McMillon paid about $3.3 billion for e-commerce startup Jet.com. That company’s founder, Marc Lore, will lead the initiative. The company predicts online sales will grow 20 percent to 30 percent in the next three years. Still, it’s a risky gambit since Amazon is increasing its dominance in the U.S. consumer space. Continue reading Walmart to Ramp Up Online Operation, Google Opens Pop-Up

Prime Day Experiences Sales Surge, Big Day for Fire TV Stick

According to Amazon, product orders made during its second annual Prime Day surpassed last year’s sales by more than 60 percent worldwide (50 percent in the U.S.), while third-party vendors experiencing a 30 percent surge. Amazon says it tripled sales of its own devices in the U.S.; the Fire TV stick was the most popular Amazon device sold during Tuesday’s event. Prime Day debuted last year to commemorate the company’s 20th anniversary and encourage consumers to sign up for its Prime membership service, which offers perks such as two-day shipping and access to Prime Video and Prime Music. Continue reading Prime Day Experiences Sales Surge, Big Day for Fire TV Stick

Amazon’s Prime Day Sales Surge 30 Percent Over Last Year

According to e-commerce giant Amazon, yesterday’s Prime Day sales from third-party merchants were up 30 percent over last year’s event, driven by international demand. The statement was made at 3:00 pm Eastern Time during the company’s day-long promotion designed to attract more subscribers for its $99-per-year Amazon Prime membership. Once the total numbers are in, Amazon anticipates “a record day for small businesses and sellers.” Last year’s event was criticized after deals ran out too early. “The company this year offered more deals and deeper inventory,” reports Bloomberg. “It relied on thousands of third-party merchants who sell goods on Amazon and give the company a cut of each sale to boost the number of deals.” Continue reading Amazon’s Prime Day Sales Surge 30 Percent Over Last Year

Amazon Offers New Monthly Subs, No Annual Commitment

Amazon unveiled two new Prime plans on its website, introducing a video-only option for monthly subscribers. The new offering could ramp up the competition between its video service and Netflix. The first new plan costs $8.99 per month to stream TV shows and movies through a video-only version of Prime, while the second runs $10.99 per month for all Prime benefits, including video and music streaming, free two-day shipping on Amazon purchases, and more. Amazon hopes to reach consumers that have been reluctant to pay $99 up front for an annual Prime membership. Continue reading Amazon Offers New Monthly Subs, No Annual Commitment

Amazon Pulls Rival Streaming Devices to Prevent “Confusion”

Amazon made a bold move yesterday by announcing that it plans to stop selling Google Chromecast and Apple TV streaming devices by the end of October. While the online retailer sells the competing Fire TV, it is expected to continue offering Roku and other streaming devices. According to Amazon, the move is designed to prevent “customer confusion” since the Google and Apple products do not stream Amazon’s video content, offered through its Prime membership. “It’s important that the streaming media players we sell interact well with Prime Video,” said a company spokesperson. Continue reading Amazon Pulls Rival Streaming Devices to Prevent “Confusion”

Amazon Plans to Acquire Portland-Based Video Formatting Firm

Amazon announced that it has agreed to purchase Elemental Technologies in an all-cash deal valued at about $500 million, marking Amazon’s biggest deal since last year’s $1 billion acquisition of videogame streaming site Twitch. Elemental helps media companies encode and transcode video content for viewing on the Web and via mobile devices. Amazon plans to add Elemental to its Amazon Web Services cloud computing division, one of the company’s faster-growing units. Amazon reportedly beat out both Ericsson AB and Cisco Systems to acquire Elemental. Continue reading Amazon Plans to Acquire Portland-Based Video Formatting Firm

Hulu Introduces Ad-Free Option to Streaming for Additional $4

For an additional $4 ($11.99 per month), Hulu is offering an ad-free option to streaming movies and TV shows. Those who prefer to pay $7.99 will still have to sit through ads. The move could help Hulu better compete with popular streaming services such as Netflix and Amazon that do not include advertising. It could also present the company with an opportunity to increase its revenue in order to invest in more content. This could prove vital since premium cable networks such as HBO and Showtime are making their programming available outside traditional cable bundles. Continue reading Hulu Introduces Ad-Free Option to Streaming for Additional $4

Walmart to Test New Shipping Service Similar to Amazon Prime

Walmart plans to launch a new loyalty program that will offer online customers unlimited free shipping for $50 per year. The program is half the cost of Amazon Prime, but does not include some of Prime’s popular perks such as streaming movies and TV shows, photo storage, and e-books. Walmart’s new service is part of a larger competition between retailers and e-commerce marketplaces for loyal customers. Walmart did not specify which markets will be part of the initial launch. Continue reading Walmart to Test New Shipping Service Similar to Amazon Prime

JetBlue to Offer More Inflight Entertainment via Amazon Prime

Beginning next quarter, JetBlue passengers on select aircraft will be able to stream movies, TV shows and music on seat-back display screens and personal devices through their Amazon Prime accounts at no additional charge. According to JetBlue, passengers who are not Prime members will have the option of registering inflight for a 30-day free trial to watch videos immediately. Passengers will also be able to rent or purchase content. The new service will be transmitted via JetBlue’s Fly-Fi inflight broadband. Continue reading JetBlue to Offer More Inflight Entertainment via Amazon Prime

Jet Has Ambitious Plan to Take on Amazon with Lower Prices

Jet, the e-commerce startup that plans to compete with Amazon on price rather than delivery time, recently made a beta version of its site available to the first 10,000 customers of the nearly 360,000 it has reportedly signed on for early access. Where other e-commerce companies are aiming to make online shopping more convenient through means of expedited shipments, Jet hopes to help customers save hundreds per year by offering lower prices on all its goods. Continue reading Jet Has Ambitious Plan to Take on Amazon with Lower Prices

Microsoft Will Offer Xbox One Without Kinect for $100 Less

Six months after the initial release of its Xbox One, Microsoft plans to offer a new version of the game console for $100 less. Beginning on June 9th, the company will offer a version that does not include the Kinect motion sensor, starting at $399. Microsoft also announced that it will begin offering new features to Xbox One and Xbox 360 owners in June. For example, Hulu and Netflix subscribers will be able to use the apps for free, without the need for an Xbox Live Gold membership. Continue reading Microsoft Will Offer Xbox One Without Kinect for $100 Less