Netflix CEO: Amazon Is Losing Around $1 Billion Per Year On Streaming Video
Netflix CEO Reed Hastings knows that Amazon.com is going to give his company a run for it’s money. However he knows that Amazon.com will have to pay top dollar to compete with them. Mr. Hastings said that Amazon.com is losing between $500 million and $1 billion per year to acquire streaming video content rights.
Mr. Hastings based that number on the value of the content deals that Amazon won when the two companies competed head to head. He said that he believes Amazon’s costs are split evenly between their U.S. operations and Europe. Amazon’s streaming service in Europe is called Lovefilm.
Netflix is on track to spending around $2.1 billion on content over the next year. Netflix charges $8 per month for their streaming service. Mr. Hastings gave his estimates in an interview with Dow Jones editors in New York.@amitchowdhry or on Google+ at +AmitChowdhry