Amazon profits fall as it invests in TV
April 26, 2013
Amazon, the world’s largest online retailer earned $82 million in the first quarter – down 37 per cent from $130 million in the same period a year earlier. Revenue rose 22 per cent to $16.07 billion from $13.19 billion.
Amazon’s operating expenses rose 22 per cent to $15.9 billion, as the company invests in enhancing its distribution network, its shopping website and its Kindle business as part of a long-term growth plan.
Amazon is also investing heavily in TV introducing pilots for 14 TV shows on its website for anyone in the US, UK and Germany to watch. Viewers will get to help decide which shows get additional episodes.
“The pilots are out in the open where everyone can have a say,” Jeff Bezos, Amazon’s founder and chief executive, said. “I have my personal picks and so do members of the Amazon Studios team, but the exciting thing about our approach is that our opinions don’t matter. Our customers will determine what goes into full-season production.”