Amazon CFO: Unbox Rates High on Repeat Business6 Mar, 2007 By: Erik Gruenwedel
Among Amazon.com's array of targeted shopping destinations such as jewelry, clothes and electronics, the nascent digital download service, Unbox, continues to generate strong repeat business, said the online retailer's CFO.
Speaking March 6 at the Morgan Stanley Technology conference in San Francisco, Tom Szkutak, SVP and CFO of Amazon, said Unbox was still in the early stages of deployment and will continue to add content and be tinkered with.
He didn't disclose how many downloads the service has sold since launching last September.
“It is certainly one of the categories that has the highest repeat purchase from a traffic standpoint,” Szkutak said. “We find that interesting. But we have a lot of work to do. We are working on other things, and making investments in the video space.”
The CFO was asked about studio concerns regarding unauthorized video content appearing on community sites such as YouTube and MySpace, and whether Amazon's strong retail appeal garnered it “favored distributor status” among the studios.
Szkutak agreed that Amazon's benefit of having an enormous installed customer base for physical products, including DVD, lends itself to trust among content holders.
“[We have] a very good working relationship in supply areas with the studios and media companies,” he said.