Amazon Q1 Profit Drops, Media Sales Increase27 Apr, 2012 By: Erik Gruenwedel
Amazon April 26 reported first-quarter (ended March 31) net income of $130 million, down 35% from net income of $201 million during the previous-year period.
The seattle-based ecommerce behemoth said North America media sales increased 17% to nearly $2.2 billion, compared with nearly $1.9 billion last year. Amazon media sales include packaged media movies, transactional video-on-demand movie and TV show rentals, Instant Prime Video, music, books and e-books, among other items.
Total North American sales topped $7.4 billion, up 37% from sales of $5.4 billion last year. Global sales topped $13.1 billion, up nearly 33% from $9.8 billion in sales last year.
Highlights in Q1 included the launch of the Amazon Instant Video app for PlayStation 3, making the PS3 system the first video game console system to offer Amazon Instant Video, and allowing PS3 users to stream Prime Instant Videos and rent or buy the latest movies and TV episodes directly from their PS3. Customers can also access Amazon Instant Video and Prime Instant Video from Kindle Fire, Mac or PC, or on a TV using either a compatible connected device such as a Blu-ray player or a Roku or directly on compatible Smart TVs.
Amazon expanded its catalog of title offerings for Prime Instant Video, announcing licensing agreements with Discovery Communications and Viacom. Among the programs added are Discovery Channel’s “Dirty Jobs,” TLC’s “Say Yes to the Dress” and Animal Planet’s “Whale Wars,” as well as thousands of TV episodes from MTV, Comedy Central, Nickelodeon, TV Land, Spike, VH1, BET, CMT and Logo.
These deals brought the total number of Prime Instant Videos to more than 17,000 movies and TV episodes from partners such as CBS, Fox, NBC Universal, Sony, Warner Bros., PBS, Disney-ABC and many more.