Amazon Sales Up in 2007, CEO Says it Will Grow Digitally30 Jan, 2008 By: Chris Tribbey
The sales of physical media helped Amazon.com enjoy its most successful year ever. However, Amazon is making a number of moves into the digital realm, with its Amazon Unbox movie service, the Amazon Kindle wireless reading device, and the recent announcement that Amazon would be selling DRM-free MP3s worldwide this year.
Amazon CEO and founder Jeff Bezos used his final words during a financial call to investors Jan. 30 to address the changes in how people buy and enjoy media.
“When media was largely physical, it made sense to buy it in the physical world. But as media becomes digital, it does not make so much sense to buy them in the physical world …” he said during the call discussing the company's results for the fourth quarter, ended Dec. 31. “As media becomes digital and downloaded and sent around cell phone to cell phone … our relative advantage over time should improve.”
Amazon reported a net increase of 39% in sales to $14.84 billion for 2007, compared to $10.71 billion in 2006. For the fourth quarter, net sales increased 42% to $5.67 billion, compared to $3.99 billion during the same period last year.
Worldwide media sales accounted for $3.33 billion of the fourth quarter earnings, a 33% increase over 2006. Worldwide electronics and general merchandise grew 58% in the quarter to $2.21 billion, compared to $1.4 billion during the same period last year.