Indeed, Amazon casts a long shadow over a number of industries. Grocery stocks plunged when the company acquired Whole Foods Market last year. Walgreens (NASDAQ:WBA) and CVS Health (NYSE:CVS) fell when the company acquired PillPack this summer, and an eventual entry by Amazon into the pharmacy space still hangs over the sector. The 2016 launch of Amazon Prints sent Shutterfly (NASDAQ:SFLY) down 12%.
That strategy has led to negative cash flow, which management admitted on the Q3 conference call would last for some time to come. And the lukewarm reaction to the Q3 numbers suggests investors may be questioning valuation, even with NFLX off 18% from June highs. All that said, Netflix is on the path to become the world’s new dominant content distributor. And — though it’s cost billions — it appears to have such a lead that even Amazon Prime Video won’t be able to catch up. Investors may be willing to again pay up for that story once market volatility subsides.
Amazon Studios is Amazon.com's division that develops television shows, movies and comics from online submissions and crowd-sourced feedback. It was started in late 2010. Content would be distributed through Amazon Video, Amazon’s digital video streaming service, and a competitor to services like Netflix and Hulu. For films, Warner Bros. is a partner.
Good delivery system, reasonably priced, decent movie and tv show selection, but some of the original programming is mediocre ranging to so-bad-it’ll-set-your-teeth-on-edge bad, shows like Transparent or Mozart in the Jungle start off strong but quickly degenerate into the worst Showtime-like cheesy schmaltz of star pimping, tired old tropes taking the place of plots, and comic relief comprising little more than a parade of characters written solely as one walking quirk each, while others like The Man in the High Castle are just jarringly bad from the get-go, seemingly written by a committee who studied what tonal elements make up a dystopian setting and then assembled these elements while committing zero interiority to the show. Aesthetics and taste are not Jeff Bezos’ strong suits, apparently. But otherwise this is a fine service, just don’t accidentally step off into Amazon’s own focus group-driven attempts at film or television production and you’ll be fine.
Amazon Prime membership in Germany, the United Kingdom, India, and the United States also provides Amazon Video, the instant streaming of selected movies and TV shows at no additional cost. In November 2011, it was announced that Prime members have access to the Kindle Owners’ Lending Library, which allows users to borrow certain popular Kindle e-books for free reading on Kindle hardware, up to one book a month, with no due date.