I’m curious what Jeff Bezos next move will be. He’s moving Amazon into the cloud computing business, which looks to be huge and to greatly reduce the inefficiencies associated with businesses developing software applications that run online (commonly called software as service).
I’m curious why he doesn’t start offering streaming video in that scenario at a cut rate. He seemingly could make big inroads into Netflix (of course people like watching videos on TV more than the internet, but these two devices are increasingly becoming one and a $50 adapter is a small price to pay for internet streaming on your television). Essentially, he could become the iTunes of video. Perhaps, Bezos fears that Mr. Jobs looks better positioned in that market.
You can also check out “Amazon Taps its Inner Apple” at Fast Company
Will video be the next thing Bezos takes on after cloud computing and the kindle???
3 responses so far ↓
cooper // July 9, 2009 at 5:27 am |
I don’t understand what you are asking, really. Where does CreateSpace + AmVOD not already represent this? In fact, I have seen more and more, particularly edu and indy documentaries moving into CreateSpace as a venue. If you are talking about simply hosting and streaming videos, there really isn’t anything you *couldn’t* do with EC2/S3 now.
What Amazon *isn’t* doing re: Netflix is subscription pricing. However, Netflix can’t make that work either. Really Hulu has almost as good a movie selection as NF now. The fact that Disc rental is “right of first sale” and streaming is a whole DMCA negotiated thing means that the Netflix business model is nigh unworkable online. AmVOD already has a better video selection than iTMS and support for playback in TiVo and tons of little boxes. Moreover, CreateSpace makes it easier for small businesses/indies to get their content into the Amazon market place than iTMS.
compassioninpolitics // July 9, 2009 at 7:36 am |
I’m sorry I didn’t specify. Amazon could do a) movie rental (one off) b) movie rental ala Netflix c) niche content that would capture the long tail of content (ie content that people won’t put up on YouTube but would sell at .50 or $1 and Amazon could sell for $1.50 or $2.
Hulu is big…but it probably only represents less than 5% of total movies.
I will check out Create Space…
cooper // July 9, 2009 at 5:13 pm |
Amazon already does movie rentals though, and I think they are already doing small sales stuff. Interestingly, though, if you look through the Amazon store, the stuff that is more niche tends to actually be more expensive than the mainstream stuff. Stuff like this:
http://www.amazon.com/Space-Viz-Production-Odyssey-Survival/dp/B0022G5ERO/ref=sr_1_2?ie=UTF8&s=digital-video&qid=1247158939&sr=1-2
I think might actually sell well if they priced it better. Still, Amazon doesn’t enforce price controls on products the way Apple does. I think the big difference a lot of people miss between the Kindle and the iPod is Amazon sells blades, Apple sells razors. iTMS is there not as a real profit center — though it makes a good bit of change now that it is bigger than Wal-Mart’s music dept — it was there to have content to encourage iPod sales. The Kindle is, like a videogame platform, subsidized on the idea that you will buy more books. Books on the kindle are still drastically overpriced relative to IP costs vs dead tree costs, so the bulk of the money is there. And given that people will buy more $10 books than $25 books, it is safe bet. But Amazon developed the Kindle because there wasn’t a iPod-priced e-ink reader available with a compelling content model. I don’t think Amazon wants to be in the hardware business, but I think they want to drag the book business into the 21st century kicking and screaming.
For their VOD model, they have the $30 set top box, and they are getting the service integrated into home theater gear:
http://www.amazon.com/gp/video/ontv/ontv/ref=sv_atv_2