Netflix isn't sinking, but it's certainly not the soaring brand it once was and has endured its fair share of struggles over the last several years. But, if you think Reed Hastings is shaking in his boots over encroaching competition you'd be wrong. The CEO says that Amazon will pose a legitimate threat to its streaming video dominance, but that day is still a long way off. He claims that the Kindle purveyor is losing between $500 million and $1 billion a year as it builds its empire and secures licensing rights. Of course, Hasting's comments during an interview with Dow Jones are largely speculative; based on the value of deals in which the two have competed directly. Then again, there seemed to be some implicit admission of the costs and struggles associated with competing in the subscription video sphere during its Q3 earnings report. The company lowered its forecast for the next quarter, saying it could lose as much as $490 million.
Filed under: Amazon
Netflix CEO claims Amazon losing up to $1 billion a year in streaming video war originally appeared on Engadget on Fri, 16 Nov 2012 15:49:00 EDT. Please see our terms for use of feeds.
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