toggle

AAPL Stock: 112.34 ( + 4.62 )

Printed from http://www.macnn.com

Netflix's Hastings: Amazon spending $1B/year on streaming

updated 07:14 pm EST, Fri November 16, 2012

Hastings says content acquisitions cost Amazon greatly

Netflix CEO Reed Hastings says that Amazon is spending big in order to catch up to Netflix in terms of video streaming content. In a recent interview, Hastings pegged Amazon's outlay on streaming video content at between $500 million and $1 billion per year. Hastings based his numbers on the value of the content deals Amazon has won when the two companies have gone head to head for exclusives.

Speaking with AllThingsD, Hastings said that Amazon will have to spend heavily in order to truly compete with Netflix in the content streaming market. Recent studies have seen Amazon gradually gaining on Netflix, though Netflix still leads by far in streaming content. In the interview, Hastings described Amazon as "the best competitor we've ever faced."

According to broadband company Sandvine, Netflix streaming is responsible for about 33 percent of Internet traffic, while Amazon accounts for 1.8 percent. in order to draw more users to its streaming service, Amazon recently changed its pricing model to allow customers to pay for Amazon Prime on a monthly basis. The move is expected to draw the two companies into even tougher competition.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Blue Yeti Studio

Despite being very familiar with Blue Microphones' lower-end products -- we've long recommended the company's Snowball line of mics ...

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

toggle

Most Commented