Amazon Losing Up to $1 Billion a Year on Streaming Video [View all]

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Source: Wall Street Journal

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. He says he thinks Amazon’s costs are split evenly between its U.S. operations and Europe, where it operates the Lovefilm streaming service.

Last month, Netflix said it was on track to spend $2.1 billion on content over the next year.

Read more: http://allthingsd.com/20121116/netflix-ceo-amazon-losing-up-to-1-billion-a-year-on-streaming-video