Amazon Q2 Income Declines 8%26 Jul, 2011 By: Erik Gruenwedel, Chris Tribbey
North American sales of movies discs, downloads, music, books and video games increases 20%
Online retailer Amazon July 26 reported that North American sales of DVD and Blu-ray Disc movies, digital downloads, music CDs, books, video games, software and consoles increased 20% to nearly $1.6 billion for the second quarter (ended June 30) compared to $1.3 billion during the previous-year period.
The tally was about 16% below the first quarter, which totaled more than $1.8 billion in sales for home entertainment.
Total North American sales, which include electronics and general merchandise, topped $5.4 billion compared to $3.6 billion last year. Worldwide media sales, which includes streaming, music, DVD and Blu-ray Disc, grew 27% to $3.66 billion, while worldwide electronics sales, with other general merchandise included, grew 69% to $5.89 billion.
When asked about the status of the Amazon Prime streaming service, founder and CEO Jeff Bezos, in an investor call, remained purposely vague, adding that there were numerous non-defined measurement points being analyzed on the service.
“It is very early right now and not a lot to share so far,” Bezos said. “We like what we’ve seen so far. We continue to focus on it.”
Amazon last week announced that its Prime loyalty customers would be the first to stream free TV shows from CBS’ library. The deal added 2,000 episodes to Prime’s portfolio of more than 8,000 movies and TV shows. Starting this summer, dozens of CBS shows also will become available to transactional VOD Amazon Instant Video customers.
The retailer posted revenue of $9.91 billion, compared to $6.57 billion during the second quarter of 2010, with a profit of $191 million, down 8% from $207 million.