The e-retail giant made a lot of great-sounding entertainment deals over the last few months including agreements to stream shows from Viacom, NBCUniversal, and PBS — and to greenlight original shows that it will begin to offer later this year. But those deals contributed to a 46% increase in technology and content costs. And that’s one reason Q2 financial results failed to impress investors, sending Amazon shares down 2.2% after hours. The company had a net loss of $7M, down from a $7M profit in the period last year, on revenues of $15.7B, +22%. Revenues came in just a little lower than analysts expected. But the 2 cent-per-share loss contrasted with predictions for a 5 cent gain. To make matters worse, Amazon said it expects an operating loss of as much as $440M in Q3 vs its $28M operating loss last year. The company’s cost increases weren’t limited to the $1.59B it spent on technology and content. But it stood out as the company also reported slowing growth in media sales, up 7% in the quarter vs 13% last year. Amazon CEO Jeff Bezos remains upbeat, though, especially about his streaming service. “Prime Instant Video has surpassed 40,000 titles, including many premium exclusives like Downton Abbey and Under The Dome,” he said.
Amazon Reports Q2 Loss As Outlays For Entertainment Grow
What's Hot on Deadline
'Black Panther' Keeps B.O. Treasure From 'Tomb Raider'; How 'I Can Only Imagine' Hit A $17M High Note
'Triple Frontier' Finally Going: Affleck, Isaac, Pascal, Hunnam, Hedlund, Arjona In JC Chandor's Lineup
Peter Bart: Donald Trump's Nightmare, Stormy Daniels Has A Secret Side As Prolific Film Director With Skills
Latest Business News
- Michael Ferro Exits As Tronc Chairman Amid Sexual Misconduct Allegations
- Deadline’s 2017 Most Valuable Movie Blockbuster Tournament Gets Underway: No. 10 ‘Get Out’
- UK’s Channel 4 Exposes CEO Of Trump Consultant Cambridge Analytica: “We’re Used To Operating In The Shadows”…
- Time’s Up Calls For Investigation Into NY District Attorney In Harvey Weinstein Case; Manhattan DA and NYPD Hit Back…
- The Weinstein Company’s 363 Bankruptcy Filing Tonight In Delaware?
- Andy Bird Exiting As Chairman Of Walt Disney International