Amazon Q2: No Comment on Unbox24 Jul, 2007 By: Erik Gruenwedel
Despite a 26% comparative year increase in second quarter (ended June 30) media revenue to $923 million (from $730 million), Amazon.com executives declined comment about the impact of the electronic retailer's Unbox download service.
Media sales include all packaged media (DVDs, VHS, music CDs and tapes) and books, posters, magazines, newspapers, video games, software and textbooks.
The company said it had taken in 2.2 million global pre-orders for the final “Harry Potter” novel, Harry Potter and the Deathly Hallows, in advance of its July 21 release.
Launched last September, Unbox features movie content from 20th Century Fox, Paramount, Sony Pictures Home Entertainment, Universal Pictures, Warner Bros. Entertainment, Lionsgate and MGM Studios.
TV Networks, including A&E, Adult Swim, Animal Planet, The Biography Channel, Cartoon Network, CBS, Comedy Central, Discovery Channel, E! Entertainment Television, Fox, FX, The History Channel, MTV, Nickelodeon, Nick at Nite, PBS, TV Land and VH-1, also offer content to the service.
“It is too early for us to discuss any of the traction we are seeing with the service,” said Tom Szkutak, SVP and CFO of Amazon, in a call with analysts.
North American revenues increased 38%, to $1.6 billion, compared to $1.1 billion during the same period last year. Overall sales increased 35%, to almost $2.9 billion, from $2.1 billion last year.
“It was our highest North American growth rate in six-and-a-half years,” Szkutak said.
The Seattle-based electronic retailer posted profit of $78 million, compared to income of $22 million last year.