Regardless of what flavor of original content Amazon ends up pursuing exactly, analysts expect to see more from the company in this domain in the future. "I think there's a logic to it," says Gartner analyst Ray Valdes. Valdes points to Google, which is spending $100 million on new original content for YouTube. Streaming service Hulu, meanwhile, plans to spend $500 million -- some of which will likely come from investors -- on TV and movie programming this year to round out its offerings of traditional broadcast and cable programming. It is banking on shows like the political comedy Battlefield. And then there's Netflix, which has been spending profusely on original series like Lilyhammer, a show starring Sopranos actor Steven van Zandt.If Amazon moves into the realm of original programming, it will follow last year's move into book publishing. A large part of Amazon's dominance in online commerce has been the breadth of its offerings. But recent moves by Apple and Google to expand their online retail offerings, there is a question of how long Amazon's dominance as a distributor/retailer will remain. Moving into production not only provides another revenue stream, but also enables Amazon to have unique content that can maintain its competitive advantage over other online outlets.
Source - Is Amazon getting into original TV? CNNMoney blog
The concern that Amazon is about to meet more competition due to the fact that Apple and Google are venturing more retail offerings is valid, however Amazon is like the grandfather to all other retail websites and customers or loyal to Amazon. While the online traffic to sites like Apple and Google is enormous, Amazon is the “go to” site when it comes to a variety of retail. I can understand that Amazon is looking to lose customers, and therefore revenue, once these websites gain more popularity, but I’m not so such that original programming is the answer. Amazon is not familiar with is the creation of original content. The company has a great team and a lot of money, so maybe I am speaking too soon. But I do not see the creation of original series by Amazon being a huge hit. Even though the initial post stated that other companies akin to Amazon have already invested or even gone as far as creating new content, the word is certainly not out and their efforts are unfortunately lacking. Nothing has become popular yet.
ReplyDeleteAmazon's step towards offering more original content has so far proved, at least in my perspective, a bit pointless. As far as the retail side goes they are the top dog as for as internet retailers go. When one think of purchasing online they don't jump to Google or Apple to buy, though they may visit for more information. I think original programming has seen a recent spike from complains that really have no business venturing in. Good luck Amazon but if it were up to me I would stick with inovating what you know and that's online retail. - Rachel Cade
ReplyDelete