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Tag: Amazon

  • Who Will Acquire Hulu? Google, DISH & Amazon Reportedly Frontrunners

    Who Will Acquire Hulu? Google, DISH & Amazon Reportedly Frontrunners

    Google has been mentioned as a possible suitor for a Hulu acquisition for a while now. In light of recent developments, it would still make sense.

    For example, recent reports indicate that Google is spending about $100 million to develop new, original content. Google is serious about making YouTube a cable competitor (let’s hope they don’t’ start charging for YouTube in general). YouTube is expected to get a redesign with a more TV channel-like flavor. They’ve recently expanded their paid movie offerings, to include new releases, and continue to expand that offering internationally.

    TV and movie content from Hulu makes sense.

    According to a report from the Wall Street Journal, Google (along with DISH and Amazon) are still in the running for an acquisition of Hulu, and Yahoo, which has been in the running, is now out.

    The Yahoo news is interesting in itself, given a couple of things:

    1. Yahoo is been doing a lot to brand itself as a media company as of late.

    2. Other rumors are going around that Microsoft is considering a bid for Yahoo, which still doesn’t have a CEO, beyond interim CEO Tim Morse.

    As a media company, it could do Yahoo well to have what Hulu has to offer, but perhaps the future of Yahoo itself is just too uncertain.

    While a Hulu acquisition would make a great deal of sense for Google, it would also make a great deal of sense for DISH or Amazon, both of which have scaled up their streaming video offerings of late.

  • Did Paramount Take a Shot at Netflix’s Streaming Service?

    Did Paramount Take a Shot at Netflix’s Streaming Service?

    As many Netflix users are already well aware of, the company has something of an issue with new movies released to the home consumer. In fact, one of the biggest complaints about the Netflix streaming service is the abject lack of this new material, something Netflix doesn’t consider an issue, regardless of what their customers say.

    Granted, it’s easy to understand why Netflix would try to spin their services in a positive, but the fact remains, it comes off like they don’t care about their members. Perhaps those who are minding the Netflix corporate offices would be better served laying the blame at the feet of the companies that deserve instead of responding to the issue with mere lip service reactions. The companies in question who deserve the blame for this lack of new movie releases (for the home, or course) are the movie studios themselves.

    It’s really not Netflix’s fault Warner Brothers would rather a flaying Blockbuster and On Demand services get their new releases first, although, perhaps Netflix could’ve pushed back a little stronger.

    As with most things having to do with access in regards to entertainment content, it comes down to money.

    With that in mind, is Paramount’s latest marketing move for the home release of Transformers: Dark of the Moon a shot at Netflix or the entire middle man industry that makes up home movie distribution? The reason for query has to do with the fact that, if you are so inclined, you can rent the third installment in the Transformers series directly from Paramount via their video on demand service.

    The rental, which costs $4.99 for high-def and $3.99 for standard, can only be seen — this soon — at Paramount’s VOD site. Previously, Paramount partnered with Facebook to show Jackass, but apparently, the buzz fizzled on that arrangement, and so, Paramount circumvented every middle man out there and decided to offer the stream on their own property.

    Is this strategy a direct shot at Netflix? Is this the wave of the future in regards to home movie rentals/purchases? If so, why did Paramount (and others) wait so long to offer their own content, nixing out companies like Amazon and, of course, Netflix? Or does removing potential revenue streams — just HBO did with Netflix — about as misguided of business decision as one can make?

    Or is this a case of these studios asking too much for their prime content, and so, services like Netflix and others simply decline the opportunity to participate? After reading about the Starz/Netflix break up, which, again, was all about money, Netflix not wanting to be held hostage by these distribution companies makes sense.

    Unfortunately, however, such territorial pissings only hurt the consumer.

    All things considered, it’s honestly surprising studios like Paramount haven’t said “screw the middle man” much sooner than they have, especially now that technology clearly supports the streaming of content, even content as large as high definition movies. Is Dark of the Moon the first step in an inevitable trend or is this simply a marketing ploy on Paramount’s behalf?

    Let us know what you think.

  • Amazon Looking to Buy Palm, Get Into the OS Game?

    The days of Amazon being known as a bookseller or a retail giant might be coming to a close. Oh, of course they’ll still be both of those, but we might start thinking about the company more along the lines of tech giants like Apple, Google, Microsoft, etc.

    The company unveiled its Kindle Fire tablet and some new Kindles this week, along with a new innovative web browser called Silk.

    Now, VentureBeat is reporting that HP is looking to unload Palm ASAP and that Amazon is the “closest to finalizing the deal.” This comes from what the publication cites as “a well-placed source”.

    Such an acquisition could give Amazon an operating system in webOS. The Kindle Fire is built on Android and utilizes Amazon’s own Android market, but if Amazon gets webOS, there’s no telling where this could go.

    Speaking of the Kindle Fire, some questions have been brought into the spotlight regarding the device’s supply and demand. It only costs $199. Reuters quotes analyst Brian Blair as saying, “When [Amazon CEO, Jeff] Bezos quipped that people should get their pre-orders in quick, that wasn’t just a sales pitch. That was him warning this will sell out.”

    Digitimes systems is reporting that Amazon will outsource the production of 10.1 inch tablets to Foxconn electronics, which works on the iPad, as well as Amazon’s Kindle e-readers. Such tablets, it says, are expected to ship before the end of the year. The announced Kindle Fire is a 7 inch tablet.

  • Amazon Silk Browser Already Raising Concerns

    Amazon made a pretty big splash yesterday with the unveiling of the Kindle Fire tablet and new versions of the Kindle. What many in the industry consider to be the most interesting news of the bunch, however, was that of Silk.

    Silk is Amazon’s new web browser, which is exclusive to the Kindle Fire, at least for now. It’s not just another browser though. It actually has something significantly different to bring to the table, and I will be very surprised if it’s not launched to other devices.

    Amazon posted the following video explaining it:

    In a nutshell, Silk makes the web browsing experience faster, because it divides the workload between the mobile hardware Amazon’s Elastic Compute Cloud (EC2). It’s explained further here.

    Chester Wisniewski, a senior security advisor at Sophos put up a blog post talking about privacy concerns with Silk. He writes:

    ” All of your web surfing habits will transit Amazon’s cloud. If you think that Google AdWords and Facebook are watching you, this service is guaranteed to have a record of *everything* you do on the web.”

    “In fact Amazon Silk’s terms and conditions notes that URLs, IP addresses and MAC addresses will be logged and can be retained for 30 days.”

    That is in fact in the terms and conditions, but so is the following:

    You can also choose to operate Amazon Silk in basic or “off-cloud” mode.  Off-cloud mode allows web pages generally to go directly to your computer rather than pass through our servers.  As such, it does not take advantage of Amazon’s cloud computing services to speed-up web content delivery.

    So, it sounds like the privacy is there if you want it, but if you want to use Silk for the things that set it apart from other browsers, you should be warned of what Wisniewski is talking about.

  • Andy Rooney Disses Bill Gates, Don Draper Pitches Facebook Timeline & Amazon Unveils Kindle Fire & Silk

    These are some interesting times we’re living in as highlighted (in very different ways by the Larry Page/Eric Schmidt and Thundercats videos below). There are so many things happening in technology and the with the Internet that Andy Rooney would have a field day with, but unfortunately his time with 60 Minutes is up. But that doesn’t mean we can’t look at old footage that is shockingly still relevant today. But those videos are just a few of the highlights.

    View other daily video round-ups here.

    Here’s the commercial for the new Amazon Kindle Fire:

    Business Insider shares this clip of a demo on how Amazon Instant works on the Kindle Fire:

    And here’s Amazon talking about Silk, its new browser on the Kindle Fire:

    Google CEO Larry Page and former CEO (current Executive Chairman) Eric Schmidt talk at Zeitgeist:

    Madmen’s Don Draper pitches the Facebook Timeline:

    Andy Rooney is retiring. Watch this clip where he rips Bill Gates and Windows

    Thundercats Meet Internet memes:

    Google shares a tour of the “world’s largest intact forest”:

    BoingBoing is pointing to this video made from old comic images found online:

    Rats live on no evil star – Tree in the Green from lallali on Vimeo.

    Google has launched new ways for Internet users to view Blogger blogs:

  • Silk: Amazon Gets Into the Browser Game

    Amazon isn’t only entering the tablet space today with the unveiling of the Kindle Fire. It’s also entering the web browser space.

    The company unveiled its new browser, which will appear exclusively on the Kindle Fire. It’s called Silk. Amazon the name is inspired by the concept that “a thread of silk is an invisible yet incredibly strong connection between two different things”.

    How clever.

    In this case, it’s the connection between the Kindle Fire and Amazon EC2. (Elastic Compute Cloud). The browser divides the workload between the mobile hardware and EC2 with each page request, Amazon says. This is supposed to make browsing much faster.

    Amazon says that on a recent day, constructing the CNN.com home page required 161 files served from 25 unique domains, and that a typical web page requires 80 files served from 13 different domains.

    “Latency over wireless connections is high – on the order of 100 milliseconds round trip,” the company says in its Silk announcement. “Serving a web page requires hundreds of such round trips, only some of which can be done in parallel. In aggregate, this adds seconds to page load times.”

    “We sought from the start to tap into the power and capabilities of the AWS infrastructure to overcome the limitations of typical mobile browsers,” Amazon’s Silk team says. “Instead of a device-siloed software application, Amazon Silk deploys a split-architecture.  All of the browser subsystems are present on your Kindle Fire as well as on the AWS cloud computing platform.  Each time you load a web page, Silk makes a dynamic decision about which of these subsystems will run locally and which will execute remotely.  In short, Amazon Silk extends the boundaries of the browser, coupling the capabilities and interactivity of your local device with the massive computing power, memory, and network connectivity of our cloud.”

    “We refactored and rebuilt the browser software stack and now push pieces of the computation into the AWS cloud,” explains CEO Jeff Bezos. “When you use Silk – without thinking about it or doing anything explicit – you’re calling on the raw computational horsepower of Amazon EC2 to accelerate your web browsing.”

    I’m guessing Google is going to have a Chrome-related response to this, as speed has been the primary focus of that browser, which continues to gain a great deal of market share momentum. Surely the the major browser players will as well.

    One thing is for sure. As long as Amazon keeps the browser limited to the Kindle Fire, or even just the Kindle Family, it’s going to have a hard time getting a significant piece of the market share. They did make the Kindle platform available across many devices, however, so it would not be surprising to see them do the same with Silk.

  • Amazon Kindle Fire Tablet, Kindle Touch, Cheap Kindle Unveiled

    Amazon has revealed its much-anticipated tablet device. It’s called the Kindle Fire and it’s only $199.

    It has a 7″ multi-touch LCD display, and has no camera or mic. It’s Wi-fi only. It weighs 14.6 oz. It has a dual-core processor. The product doesn’t seem to be blowing many people away in terms of features. Clearly, it’s got less to offer than the iPad, but that $199 price tag and the Amazon and Kindle brands could go a long way. It’s drawing a lot of comparisons to the BlackBerry Playbook. Hat tip to Engadget for liveblogging the unveiling.

    It’s built on Android, but Amazon’s own version of it (remember, the operating system is open source).

    It comes with apps from Amazon’s Android store as long as Kindle, Amazon MP3 and Amazon Prime video content. In fact, the tablet will launch with a 30-day free trial of Amazon Prime, which could help the boost the company’s efforts in Netflix competition.

    Kindle Fire

    The Kindle Fire comes with a new web browser from Amazon called Silk. Here’s the official description:

    The Kindle Fire web browser Amazon Silk introduces a radical new paradigm – a “split browser” architecture that accelerates the power of the mobile device hardware by using the computing speed and power of the Amazon Web Services Cloud. The Silk browser software resides both on Kindle Fire and on the massive server fleet that comprises the Amazon Elastic Compute Cloud (Amazon EC2). With each page request, Silk dynamically determines a division of labor between the mobile hardware and Amazon EC2 (i.e. which browser sub-components run where) that takes into consideration factors like network conditions, page complexity, and cached content. The result is a faster web browsing experience, and it’s available exclusively on Kindle Fire.

    Amazon also announced the Kindle Touch, a smaller, lighter Kindle with a touch screen and no keyboard. There’s a feature called “X Ray,” which points users to different content about what they’re reading. For example, “Versailles Treaty” in the book Remains of the Day, could bring up a Wikipedia entry. It’s supposed to have good batter life, and ti costs $99. There’s also a 3G version for $149. It will start shipping on November 21, in time for the holidays, but pre-orders will be available today.

    Amazon also announced a new $79 version of the Kindle. It’s not touch, but it also doesn’t have a keyboard. Just buttons. This one is available today.

    Let’s not forget that Amazon is using its Kindle devices to help along its daily deals product AmazonLocal as well. The success of these devices has pretty big implications for the company.

  • Bill Gates Is Still Incredibly Rich

    Bow down to the richest person in America. Again. That’s right, folks. Bill Gates is back on top of the newest Fortune 400 list for richest people in the United States. The Microsoft founder has long flirted with the top of this list, and, in fact, he was number one on the Forbes list from 1995 to 2009, although, in 2008, he relinquished his spot to let someone else enjoy the glow.

    But now Gates is back at the top, even though he’s technically no longer with Microsoft. Keeping those common stocks was clearly a good idea. According to the newest list from Forbes, Gates’ worth is $59 billion, which is $20 billion more than the second place entry, Warren Buffet. Beyond that, however, is the sheer amount of tech industry mavens are on the Forbes list. In fact, the top 20 or so is absolutely littered with people who made their money with the computers and/or the Internet.

    Some examples include:

    • Larry Ellison, co-founder and CEO of Oracle, is in fourth place with $33 billion
    • Amazon’s Jeff Bezos is in 13th place with $19.1 billion
    • Mark Zuckerberg ($17.5 B), Sergey Brin ($16.7 B), and Larry Page ($16.7 B) follow Bezos at 14, 15, and 16
    • Michael Dell comes in at 18th with a worth of $15 billion
    • Steve Ballmer follows Dell at 19 with $13.9 billion

    Clearly, the lesson for all you youngsters wondering what field you should study is to look towards the computer/tech industry. It can make a billionaire out of you. Oddly enough, the last place person on Forbes’ list is Washington Redskins owner Daniel Snyder. While Snyder may not have the net worth of the people in front of him, he’s still worth over $1 billion, something I’m sure will manage to keep him warm at night.

    And for all those worried about Yahoo, Jerry Yang, co-founder and ex-CEO of Yahoo, is also on the list with a worth of $1.1 billion.

  • Kindle Books Available Through 11,000 Libraries in U.S.

    Kindle Books Available Through 11,000 Libraries in U.S.

    Amazon announced today that Kindle books are now available at over 11,000 local libraries in the U.S. To check out Kindle books, users can simply find them on their local library’s website, provided they offer them.

    “Starting today, millions of Kindle customers can borrow Kindle books from their local libraries,” said Jay Marine, Director, Amazon Kindle. “Libraries are a critical part of our communities and we’re excited to be making Kindle books available at more than 11,000 local libraries around the country. We’re even doing a little extra here – normally, making margin notes in library books is a big no-no. But we’re fixing this by extending our Whispersync technology to library books, so your notes, highlights and bookmarks are always backed up and available the next time you check out the book or if you decide to buy the book.”

    The following Kindle book features apply to library check-outs:

    • Whispersync technology wirelessly sync your books, notes, highlights, and last page read across Kindle and free Kindle reading apps
    • Real Page Numbers let you easily reference passages with page numbers that correspond to actual print editions
    • Facebook and Twitter integration makes it easy to share favorite passages with your social networks
    • Popular Highlights show you what our community of millions of Kindle readers think are the most interesting passages in your books
    • Public Notes allow you to share your notes and see what others are saying about Kindle books

    “This is a welcome day for Kindle users in libraries everywhere and especially our Kindle users here at The Seattle Public Library,” said Marcellus Turner, city librarian for The Seattle Public Library. “We’re thrilled that Amazon is offering such a new approach to library ebooks that enhances the reader experience.”

    Last month, Amazon launched an HTML5 web app called Kindle Cloud Reader, which is essentially a web-based version of the Kindle reader, so you can read the books on the web.

    Amazon is expected to launch a Netflix-style book service as part of Amazon prime. Members would reportedly have access to a library of older titles as part of the $79 a year membership.

    This month, Amazon also started pushing AmazonLocal deals to Kindle devices.

  • AmazonLocal Deals Hit Kindle Devices

    AmazonLocal Deals Hit Kindle Devices

    Amazon announced today that AmazonLocal deals are coming to Kindle and Kindle 3G with Special Offers. These offers will appear on the Kindles’ screensavers while the user isn’t reading.

    The feature is launching in New York City for now, with other markets coming before the year’s over. Launch deals include:

    • $7 for a one-hour bike rental in Central Park ($15 value)
    • $5 for $10 at Dangerfield’s Comedy club
    • $59 for one month unlimited yoga classes at Bikram Yoga Grand Central ($180 value)
    • $5 for $10 worth of ice cream and ice cream cakes at Coldstone Creamery
    • $45 for lunch at City Winery ($98 value)

    “Since we introduced special offers and lowered the price of Kindle to $114 and Kindle 3G to $139 earlier this year, customer response has been overwhelmingly positive – these quickly became our bestselling Kindles,” said Jay Marine, Director, Amazon Kindle. “Customers tell us they love the new lower price for Kindle and the money-saving special offers that display when they aren’t reading. We think customers are going to be thrilled with this new, convenient way to take advantage of AmazonLocal deals – you can view, purchase, and redeem the deals using only your Kindle – no computer, no printer, no hassle.”

    @AmazonKindle
    Kindle Team    AmazonLocal coming to Kindle with Special Offers—view, purchase, and redeem money-saving local deals from your Kindle. http://t.co/DToMQpur 3 hours ago via web · powered by @socialditto

    Late last month, Amazon launched Amazon Local into more markets, including: New York City, Austin, Charlotte, Chicago’s northwest suburbs, Northern Virginia, Orlando and the San Francisco Peninsula.

    The product was initially launched in Boise in June, and by late August, it had been expanded into 30 locations in 10 states. It also launched in 14 new markets today:

    @AmazonLocal
    AmazonLocal    Hello, Florida! AmazonLocal is now bringing great deals to Fort Lauderdale. http://t.co/rlsX0INu 7 hours ago via Social Manager Publisher · powered by @socialditto

    @AmazonLocal
    AmazonLocal    Hello, Texas! AmazonLocal is now bringing great deals to Dallas, North Dallas/Plano, and DFW-Mid-Cities. http://t.co/p61RQEYz 6 hours ago via Social Manager Publisher · powered by @socialditto

    @AmazonLocal
    AmazonLocal    Hello, California! AmazonLocal is now in the East Bay, Contra Costa County & San Diego. http://t.co/7vJ7oFuy 5 hours ago via Social Manager Publisher · powered by @socialditto

    @AmazonLocal
    AmazonLocal    Hello, Maryland, Minnesota, Nevada, New Jersey and Pennsylvania! AmazonLocal is now available in your state. http://t.co/r1rsLDNc 4 hours ago via Social Manager Publisher · powered by @socialditto

  • Amazon May Launch Netflix-Style Book Service as Part of Amazon Prime

    Amazon May Launch Netflix-Style Book Service as Part of Amazon Prime

    Rumor has it that Amazon is in talks with publishers about the potential launch of a Netflix-like service for digital books. Actually, it sounds like it would simply be added on to a service the company is already offering.

    Amazon currently offers access to digital movies and TV shows, along with two-day shipping as part of its Amazon Prime service. This costs $79 a year. According to a report from the Wall Street Journal, the company is considering adding this book service to this product. It would feature access to a library of older titles.

    The report cites “people familiar with the matter,” and there is not a whole lot more in the way of details, other than the notion that publishers are a little skeptical about the concept.

    Amazon has already been bolstering its media library ahead of a pending tablet launch, which will square off against Apple’s iPad. Last month, over 100,000 new titles were added to Amazon Instant Video.

    “We are focused on offering our customers the very best selection and are always working to expand our already extensive list of great video content,” said Steve Oliver, director of video at Amazon.

    It stands to reason that the digital book list will continue to grow rapidly thanks to Amazon’s popular Kindle platform, and the ease with which authors can use it to get their works published. Not to mention the huge pool of potential readers. One in five Internet users visited Amazon sites in June.

    Sales of Kindle devices were also accelerated last quarter. In its last earnings report, Amazon reported that the U.S. Kindle Store had over 950,000 books, including new releases and 110 of 111 New York Times Bestsellers.

  • Amazon Local Expanded Into More Markets

    Amazon Local Expanded Into More Markets

    Amazon announced the launch of Amazon Local in in new markets, including New York City today. NYC is obviously a major market for the online retail giant’s daily deals offering.

    The service originally launched in Boise in early June. Two months later, it launched on Groupon’s home turf in Chicago. Now NYC, Austin, Charlotte, Chicago’s northwest suburbs, Northern Virginia, Orlando and the San Francisco Peninsula.

    @AmazonLocal
    AmazonLocal    Hello, NYC, Austin, Charlotte, Chicago’s northwest suburbs, Northern Virginia, Orlando & the San Francisco Peninsula! http://t.co/NOqsYzK 4 hours ago via Social Manager Publisher · powered by @socialditto

    “Since our initial launch in Boise in June, AmazonLocal has rapidly expanded to 30 distinct locations in 10 states. Whether it’s an amazing deal on local services or, in the coming months, on Amazon.com, MYHABIT.com and endless.com, AmazonLocal customers can expect to find significant savings every day,” said Mike George, vice president of AmazonLocal. “In New York, there’s no better way to truly understand the Big Apple than by getting the best deals the city has to offer.”

    Amazon says NYC customers can expect deals like:

    • 50% off tickets to Cirque du Soleil’s newest show, Zarkana, in Midtown
    • $50 for $100 at Uskudar Turkish Restaurant in Uptown
    • $13 for $27 worth of cupcakes at Brooklyn Cupcake
    • 74% off one month of unlimited hot yoga classes at Bikram Yoga Harlem
    • $15 for $30 worth of groceries at any Upper East Side Gristedes

    Amazon is also including deals from affiliated sites, such as: $25 for $50 to spend on jewelry and watches at Amazon.com, $40 for $80 to spend at MYHABIT.com and $25 for $50 to spend at 6pm.com.

    Customers that use Amazon Rewards Visa cards will earn five points for each dollar spent on AmazonLocal in 2011.

  • Amazon Instant Video Up to Over 100,000 Titles

    Amazon Instant Video Up to Over 100,000 Titles

    Amazon announced that it now offers over 100,000 movies and TV shows through its Amazon Instant Video service. That includes new releases, and these titles can be either purchased or rented.

    These titles start at $3.99 a piece, and can be viewed on Macs, PCs, or on TV via 300 different devices from Lg, Logitech, Panasonic, Roku, Samsung, Sony, Tivo, and Vizio.

    “We are focused on offering our customers the very best selection and are always working to expand our already extensive list of great video content,” said Steve Oliver, director of video at Amazon. “The 100,000 titles on Amazon Instant Video range from new hit blockbusters to old favorites, with more than 15,000 of those titles available in HD, and popular TV shows available the day after they first air. On top of that, Amazon Prime members have the added benefit of unlimited, commercial-free, instant streaming of more than 9,000 Prime instant videos at no additional cost.”

    Netflix, the current leader in movie rental, recently announced a new pricing structure that has been pretty controversial among members. Essentially, members who have had their streaming and DVD together plan have to pay 60% more to keep the same level of service. This goes into effect September 1 for existing members (that’s not too far off).

    Amazon is often named as a major contender in the streaming space – the space that appears to be the future norm of video consumption. It will be interesting to see how the market share changes (if it does) once September gets here.

    Amazon sites already attract one in five Internet users around the globe, according to a report out this week from comScore. They’ve also got tablet aspirations, which could factor heavily into their video streaming plans.

    Amazon announced a 51% year-over-year growth in revenue for the second quarter in its latest earnings report. They also announced a deal with CBS to stream the networks’ TV shows.

  • Amazon Attracts 1 in 5 Internet Users

    Amazon Attracts 1 in 5 Internet Users

    comScore released a report today on the top global retail and auction sites, finding that Amazon sites were visited by one in five global Internet users in June – more than any other in the category.

    Amazon sites received visits from over 282 million visitors in June, according to the report. That’s 20.4% of the world’s Internet population.

    “While retail e-commerce has already grown to become a $150+ billion annual industry in the U.S., it still presents enormous upside opportunity across much of the globe,” said comScore co-Founder and Chairman Gian Fulgoni. “Technology has changed the way consumers behave, and increasingly they are opting for the convenience and pricing advantages offered by the online channel. Several global retail brands have already capitalized on this global consumer trend, and many other retailers are sure to pursue their share of the pie.”

    eBay came in second behind Amazon at 16.2% of global Internet visitors, though PayPal is becoming an increasingly major factor in eBay’s overall business strategy.

    Alibaba reached 11.3% of Internet users, Apple reached 9.7%, and Rakuten reached 4.2%.

    comScore Lists Top Retailers

    comScore Lists Top Retailers

    As you can see from the above charts, Amazon attracted 35.4% of its audience from North America. Europe accounted for 31.8% and Asia Pacific accounted for 24.1%.

    In its most recent earnings report, Amazon announced a sales increase of 51% year-over-year.

  • California’s Amazon Tax Law Forces Affiliate Marketer to Move to Nevada

    After years of operating a successful comparison shopping site in California, Nick Loper recently had to shut down his business and move to another state to start over. Why? Loper was one of the affiliate marketing victims of the online sales tax law that California passed earlier this summer.

    Did California’s tax law impact you? Please share.

    The law, which is often referred to as the “Amazon Tax Law,” requires online retailers to pay taxes on their affiliate advertising. Almost immediately after this law went into effect, online retailers, such as Amazon, cut ties with affiliate marketers in the state.

    According to Loper, this action meant that a half dozen of his largest advertisers on ShoesRUs terminated their relationship with him, leaving him shy of 70 percent of his revenue.

    “It was, essentially, out of business overnight,” he said.

    The California law was intended to help the state with its struggling financial issues and to also reduce the competitive advantage that many brick and mortars believe online retailers have over them. Loper, however, does not think that either of these goals has been fulfilled.

    “Neither of those groups are better off today than they were before the law passed,” he told us. “The state’s not getting any revenue and the playing field, per se, still has not been equalized.”

    Loper also pointed out that he would have never thought such a law would be implemented in a state that is the home of so many tech companies and the Silicon Valley. But, since it was, he had no choice but to move from California to Nevada to start a new business.

    His new site is a comparison shopping site for shoes called ShoeSniper and is similar to his previous site. He chose Nevada because it does not have an online sales tax. Fortunately for him, he has already regained nearly all of his former advertising relationships.

    Interestingly, as the debate surrounding online sales tax debate continues, more states are considering taking actions similar to the law that California recently passed. What’s even more interesting is that Congress is contemplating action at a federal level. Senator Dick Durbin (D-IL), recently introduced the “Main Street Fairness Act,” which Amazon, incidentally, supports. The House has introduced a similar bill as well.

    Would  you like to see the online sales tax issues solved at a state level or federal level?

  • Amazon Kindle Cloud Reader Launched

    Amazon Kindle Cloud Reader Launched

    Amazon announced the launch of the Kindle Cloud Reader – a web-based version of the Kindle Reader. The web app takes advantage of HTML5, and can be used online or offline without having to download anything.

    The app will sync the user’s Kindle Library, along with the last page read, bookmarks, notes, and all of that good stuff. it also comes with a touch-optimized version of the Kindle store. It can be used with Safari on iPad/desktop and Chrome.

    Features, as described by Amazon:

    • An immersive view of your entire Kindle library, with instant access to all of your books
    • Start reading over 950,000 Kindle books instantly within your browser
    • An embedded Kindle Store optimized for your web browser makes it seamless to discover new books and start reading them instantly
    • New Kindle Store for iPad is built from the ground up for iPad’s touch interface
    • Your current book is automatically made available for offline use, and you can choose to save a book for reading offline at any time
    • Receive automatic software updates without the need to download new software
    • Select any book to start reading, customize the page layout to your desired font size, text color, background color, and more
    • View all of the notes, highlights, and bookmarks that you’ve made on other Kindle apps or on Kindle
    • Sync your last page read across your Kindle and free Kindle apps so you can always pick up where you left off

    “We are excited to take this leap forward in our ‘Buy Once, Read Everywhere’ mission and help customers access their library instantly from anywhere,” said Amazon Kindle Director Dorothy Nicholls. “We have written the application from the ground up in HTML5, so that customers can also access their content offline directly from their browser. The flexibility of HTML5 allows us to build one application that automatically adapts to the platform you’re using – from Chrome to iOS. To make it easy and seamless to discover new books, we’ve added an integrated, touch optimized store directly into Cloud Reader, allowing customers one click access to a vast selection of books.”

    Kindle Cloud Reader is available today for Safari and Chrome, but will also become available for IE, Firefox, and the BlackBerry Playbook browser (as well as other mobile browser) in the coming months.

    In Amazon’s latest earnings report, the company reported better revenue than expected, suggesting that the Kindle played a significant role in this.

    “Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade. Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139,” said CEO Jeff Bezos. “Customers love the convenience of a 3G reader — no hunting for or paying for Wi-Fi hotspots. Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts.”

    The U.S. Kindle Store now has more than 950,000 books – 800,000 of these books are $9.99 or less.

    Reports indicate that Amazon is gearing up to produce tablets to take on the iPad 2.

  • Amazon Local Heads to Groupon’s Home Turf

    Amazon Local Heads to Groupon’s Home Turf

    Two months ago, Amazon launched its Daily Deals offering Amazon Local in Boise, Idaho. Since then, it has expanded to include a handful of regions in California, Florida and Washington. The offering is attracting some attention in the press now because it has also expanded into Chicago.

    Why is this significant? Because that would be Groupon’s home turf, and the thinking is that direct competition from a powerhouse and trusted brand such as Amazon could be a major thorn in the company’s side.

    Another line of thinking, however, would be that there’s plenty of room for a lot of deals providers to thrive. People like to save money, after all, and many are likely to use a variety of providers. There are already a lot of different options out there, and they don’t seem to be having too much trouble attracting advertisers.

    @AmazonLocal
    AmazonLocal    Get ready for more great local deals–AmazonLocal is expanding. Stay tuned! http://bit.ly/jnKnCT 7 days ago via Social Manager Publisher · powered by @socialditto

    The Wall Street Journal reports: “For now, sales people from LivingSocial — a Groupon rival in which Amazon has an investment — are roping in the merchants for the Amazon local-deals offering. But Amazon said it has hired its own sales team for a standalone daily-deals offering planned for the latter part of this year.”

    Amazon is quoted as saying: “Customers already know and trust Amazon.com for their online purchases, and now with Amazon Local, they can also find great deals right in their own city. AmazonLocal is a great way for residents of the Windy City to enjoy the restaurants, spas, and activities in their backyard.”

    Groupon filed for its IPO right around the time Amazon Local launched in Boise. It has been pushed back, however, pending an SEC review of the company’s accounting practices.

    Last week, Groupon and Foursquare announced Groupon Now for the popular check-in service.

  • Main Street Fairness Act Draws Amazon Support, eBay Opposition

    Main Street Fairness Act Draws Amazon Support, eBay Opposition

    On Friday, Senate Democrats introduced the “Main Street Fairness Act” again. It was also introduced in in the House by Rep. William Delahunt (D-MA) during the last session of Congress.

    Essentially, the bill calls for a federal set of guidelines for how states should collect taxes from online retailers. This has been a hot button issue lately. It blew up recently as Amazon and others shut down affiliate programs in California to avoid taxes, causing harm to small businesses who had relied them.

    Amazon and eBay have presented opposing views to such a bill. Amazon is supporting it, while eBay says it will harm small retailers. PCMag shares the following statement from Brian Bieron, eBay’s senior director, of federal government relations and global public policy:

    “A collection of state tax commissioners have again been able to get an outdated Internet sales tax bill introduced in Congress, but we are confident that it will be rejected because it would harm small Internet retailers. Better policy is reflected by H.Res. 95 from Congressman Dan Lungren (R-CA) and Congresswoman Zoe Lofgren (D-CA) with 27 bipartisan co-sponsors, which says that Congress won’t give states ‘the authority to impose unfair tax collecting requirements on small online businesses.’”

    “The giant retailers jockeying for new Internet sales taxes have national store networks that they combine with their major online sales platforms, a business model they know brings some tax collection duties. Forcing small businesses to take on the same costs and tax burdens as national retail businesses is unrealistic, unfair and will unbalance the playing field between giant retailers and small business retailers on the Internet.”

    The House bill says states would be authorized to “require all sellers not qualifying for the small seller exception to collect and remit sales and use taxes with respect to remote sales sourced to that Member State under the Agreement.”

    In Section 3 of the bill, as presented in the House of Representatives, it says Congress makes the following findings:

    (1) States should be encouraged to simplify their sales and use tax systems.

    (2) As a matter of economic policy and basic fairness, similar sales transactions should be treated equally, without regard to the manner in which sales are transacted, whether in person, through the mail, over the telephone, on the Internet, or by other means.

    (3) Congress may facilitate such equal taxation consistent with the United States Supreme Court’s decision in Quill Corp. v. North Dakota.

    (4) States that voluntarily and adequately simplify their tax systems should be authorized to correct the present inequities in taxation through requiring sellers to collect taxes on sales of goods or services delivered in-state, without regard to the location of the seller.

    (5) The States have experience, expertise, and a vital interest in the collection of sales and use taxes, and thus should take the lead in developing and implementing sales and use tax collection systems that are fair, efficient, and non-discriminatory in their application and that will simplify the process for both sellers and buyers.

    (6) Online consumer privacy is of paramount importance to the growth of electronic commerce and must be protected.

    The whole House Bill can be read here. Information regarding the Senate Bill is here, but the full text is as of yet unavailable.

  • Amazon Earnings Released

    Amazon announced its second quarter earnings today, and that includes an increase in sales of 51% (YoY) to $9.91 billion. Not bad. Better than what Wall Street had expected, in fact.

    The company vaguely suggests that the Kindle has played a significant role in its continued growth.

    CEO Jeff Bezos said, “Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade. Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139. Customers love the convenience of a 3G reader — no hunting for or paying for Wi-Fi hotspots. Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts.”

    Operating income was $201 million in the second quarter, compared with $270 million in second quarter 2010. Net income decreased 8% to $191 million.

    Here’s the earnings release in its entirety:

    SEATTLE, Jul 26, 2011 (BUSINESS WIRE) —

    Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its second quarter ended June 30, 2011.

     

    Operating cash flow increased 25% to $3.21 billion for the trailing twelve months, compared with $2.56 billion for the trailing twelve months ended June 30, 2010. Free cash flow decreased 8% to $1.83 billion for the trailing twelve months, compared with $1.99 billion for the trailing twelve months ended June 30, 2010.

    Common shares outstanding plus shares underlying stock-based awards totaled 468 million on June 30, 2011, compared with 465 million a year ago.

    Net sales increased 51% to $9.91 billion in the second quarter, compared with $6.57 billion in second quarter 2010. Excluding the $477 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 44% compared with second quarter 2010.

    Operating income was $201 million in the second quarter, compared with $270 million in second quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $28 million.

    Net income decreased 8% to $191 million in the second quarter, or $0.41 per diluted share, compared with net income of $207 million, or $0.45 per diluted share, in second quarter 2010. Second quarter 2011 net income was positively impacted by equity-method investment activity of $15 million, including a $49 million gain on the sale of an equity position partially offset by $34 million in losses from equity-method investments.

    “Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade,” said Jeff Bezos, founder and CEO of Amazon.com. “Kindle 3G with Special Offers has quickly become our bestselling Kindle at only $139. Customers love the convenience of a 3G reader — no hunting for or paying for Wi-Fi hotspots. Amazon picks up the tab for the 3G wireless, so you have no monthly payments or annual contracts.”

    Highlights

     

    • Sales growth of Kindle devices accelerated in second quarter 2011 compared to first quarter 2011.
    • Since AT&T agreed to sponsor screensavers, Kindle 3G with Special Offers is now our bestselling Kindle device – at only $139. With Kindle 3G, there’s no wireless set up and no paying or hunting for Wi-Fi hotspots. Kindle 3G’s always-on global wireless connectivity means that wherever you are, you can download books and periodicals in less than 60 seconds and start reading instantly. Amazon pays for Kindle’s 3G wireless connectivity, which means the convenience of 3G comes with no monthly fees, data plans or annual contracts.
    • Amazon.com announced the launch of Kindle Textbook Rental, offering students savings of up to 80% off textbook list prices. Tens of thousands of textbooks are available for the 2011 school year. In addition, Kindle Textbook Rental offers the ability to customize rental periods to any length between 30 and 360 days, so students only pay for the specific amount of time they need a book.
    • The U.S. Kindle Store now has more than 950,000 books, including New Releases and 110 of 111 New York Times Bestsellers. Over 800,000 of these books are $9.99 or less, including 65 New York Times Bestsellers. Millions of free, out-of-copyright, pre-1923 books are also available to read on Kindle.
    • The Company launched MyHabit.com, a membership-only fashion destination offering up to 60 percent off list prices of designer and boutique brands in women’s, men’s and children’s departments, with the convenience of free, instant membership; fast, free shipping and free return shipping in the U.S. on eligible items; and fast, $15 international shipping.
    • Amazon.com announced that customers will be able to stream TV shows from CBS’s vast library. Amazon Prime customers will be able to instantly watch thousands of episodes from the CBS library at no additional cost to their membership. With the deal, Amazon will add 2,000 episodes to grow the total number of Prime instant videos to more than 8,000 movies and TV shows. Starting this summer, dozens of CBS shows will also become available to Amazon Instant Video customers.
    • The Company announced three enhancements to Amazon Cloud Drive and Cloud Player: storage plans that include unlimited space for music, free storage for all Amazon MP3 purchases and Cloud Player for Web, now on iPad.
    • Amazon announced that Marketplace sellers can list their products across all its European websites using just one single seller account, allowing sellers to make their inventory available across Amazon.co.uk, Amazon.de, Amazon.fr and Amazon.it. Customers benefit from access to millions of additional products. Fulfillment by Amazon (FBA) sellers can now also store their products in an Amazon fulfillment center in one country and offer them for sale across all of Amazon’s European websites.
    • North America segment sales, representing the Company’s U.S. and Canadian sites, were $5.41 billion, up 51% from second quarter 2010.
    • International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese and Italian sites, were $4.51 billion, up 51% from second quarter 2010. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 36%.
    • Worldwide Media sales grew 27% to $3.66 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 20%.
    • Worldwide Electronics and Other General Merchandise sales grew 69% to $5.89 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 62%.
    • Amazon Web Services (AWS) and SAP announced that AWS has been certified as a global technology partner of SAP. Customers can now deploy a variety of SAP solutions in full production environments including SAP(R) Rapid Deployment and SAP(R) BusinessObjects(TM).
    • AWS announced the availability of Amazon Relational Database Service (RDS) for Oracle databases, allowing customers to easily set up, operate and scale fully managed Oracle databases in the cloud.
    • AWS lowered prices for the fifteenth time in four years by eliminating inbound Internet data transfer costs and reducing outbound data transfer costs.

     

    Financial Guidance

    The following forward-looking statements reflect Amazon.com’s expectations as of July 26, 2011. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

    Third Quarter 2011 Guidance

     

    • Net sales are expected to be between $10.3 billion and $11.1 billion, or to grow between 36% and 47% compared with third quarter 2010.
    • Operating income is expected to be between $20 million and $170 million, or between 93% decline and 37% decline compared with third quarter 2010.
    • This guidance includes approximately $180 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

     

    A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

    These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, government regulation and taxation, payments and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

    Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings.

    About Amazon.com

    Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. Kindle, Kindle 3G, Kindle with Special Offers, Kindle 3G with Special Offers and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper. Kindle 3G, Kindle 3G with Special Offers and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling product across the millions of items sold on Amazon.

    Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, and www.amazon.it. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

    AMAZON.COM, INC.
    Consolidated Statements of Cash Flows
    (in millions)
    (unaudited)
    Three Months Ended
    June 30,    		 Six Months Ended
    June 30,    		 Twelve Months Ended
    June 30,
    2011 2010 2011 2010 2011 2010
    CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 2,641 $ 1,844 $ 3,777 $ 3,444 $ 1,629 $ 1,936
    OPERATING ACTIVITIES:
    Net income 191 207 391 505 1,038 1,088
    Adjustments to reconcile net income to net cash from operating activities:
    Depreciation of fixed assets, including internal-use software and website development, and other amortization 244 129 446 249 766 456
    Stock-based compensation 144 111 254 196 481 386
    Other operating expense (income), net 41 25 74 51 129 83
    Losses (gains) on sales of marketable securities, net 1 – 3 – 2 (2 )
    Other expense (income), net (39 ) (22 ) (2 ) (27 ) (53 ) (31 )
    Deferred income taxes 20 (8 ) 35 (28 ) 67 49
    Excess tax benefits from stock-based compensation (15 ) (75 ) (61 ) (161 ) (159 ) (196 )
    Changes in operating assets and liabilities:
    Inventories (274 ) (141 ) 69 180 (1,130 ) (435 )
    Accounts receivable, net and other (73 ) (42 ) 286 412 (304 ) (252 )
    Accounts payable 114 (81 ) (2,535 ) (1,972 ) 1,835 959
    Accrued expenses and other 63 200 (119 ) (161 ) 663 265
    Additions to unearned revenue 257 161 467 349 805 990
    Amortization of previously unearned revenue (251 ) (214 ) (471 ) (441 ) (935 ) (799 )
    Net cash provided by (used in) operating activities 423 250 (1,163 ) (848 ) 3,205 2,561
    INVESTING ACTIVITIES:
    Purchases of fixed assets, including internal-use software and website development (433 ) (196 ) (731 ) (336 ) (1,374 ) (575 )
    Acquisitions, net of cash acquired, and other (469 ) (21 ) (608 ) (40 ) (921 ) (45 )
    Sales and maturities of marketable securities and other investments 2,028 1,208 3,967 2,080 6,138 3,354
    Purchases of marketable securities and other investments (2,077 ) (1,466 ) (3,189 ) (2,721 ) (6,746 ) (5,661 )
    Net cash provided by (used in) investing activities (951 ) (475 ) (561 ) (1,017 ) (2,903 ) (2,927 )
    FINANCING ACTIVITIES:
    Excess tax benefits from stock-based compensation 15 75 61 161 159 196
    Proceeds from long-term debt and other 34 5 123 67 197 133
    Repayments of long-term debt, capital lease, and finance lease obligations (140 ) (37 ) (251 ) (98 ) (398 ) (186 )
    Net cash provided by (used in) financing activities (91 ) 43 (67 ) 130 (42 ) 143
    Foreign-currency effect on cash and cash equivalents 25 (33 ) 61 (80 ) 158 (84 )
    Net increase (decrease) in cash and cash equivalents (594 ) (215 ) (1,730 ) (1,815 ) 418 (307 )
    CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2,047 $ 1,629 $ 2,047 $ 1,629 $ 2,047 $ 1,629
    SUPPLEMENTAL CASH FLOW INFORMATION:
    Cash paid for interest on long term debt $ 3 $ 3 $ 6 $ 5 $ 12 $ 9
    Cash paid for income taxes (net of refunds) (1 ) 43 6 46 35 60
    Fixed assets acquired under capital leases 230 83 411 142 673 252
    Fixed assets acquired under build-to-suit leases 97 60 166 120 219 191
    AMAZON.COM, INC.
    Consolidated Statements of Operations
    (in millions, except per share data)
    (unaudited)
    Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    2011 2010 2011 2010
    Net sales $ 9,913 $ 6,566 $ 19,770 $ 13,697
    Operating expenses (1):
    Cost of sales 7,525 4,957 15,133 10,458
    Fulfillment 941 582 1,795 1,128
    Marketing 341 211 667 412
    Technology and content 698 408 1,278 773
    General and administrative 166 113 300 210
    Other operating expense (income), net 41 25 74 51
    Total operating expenses 9,712 6,296 19,247 13,032
    Income from operations 201 270 523 665
    Interest income 16 12 31 23
    Interest expense (15 ) (9 ) (27 ) (16 )
    Other income (expense), net 23 24 4 27
    Total non-operating income (expense) 24 27 8 34
    Income before income taxes 225 297 531 699
    Provision for income taxes (49 ) (88 ) (138 ) (189 )
    Equity-method investment activity, net of tax 15 (2 ) (2 ) (5 )
    Net income $ 191 $ 207 $ 391 $ 505
    Basic earnings per share $ 0.42 $ 0.46 $ 0.87 $ 1.13
    Diluted earnings per share $ 0.41 $ 0.45 $ 0.85 $ 1.11
    Weighted average shares used in computation of earnings per share:
    Basic 453 447 452 446
    Diluted 460 455 460 455
    (1) Includes stock-based compensation as follows:
    Fulfillment $ 32 $ 24 $ 56 $ 42
    Marketing 10 7 17 12
    Technology and content 75 58 136 103
    General and administrative 27 22 45 39
    AMAZON.COM, INC.
    Segment Information
    (in millions)
    (unaudited)
    Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    2011 2010 2011 2010
    North America
    Net sales $ 5,406 $ 3,590 $ 10,871 $ 7,370
    Segment operating expenses (1) 5,192 3,390 10,367 6,897
    Segment operating income $ 214 $ 200 $ 504 $ 473
    International
    Net sales $ 4,507 $ 2,976 $ 8,899 $ 6,327
    Segment operating expenses (1) 4,335 2,770 8,552 5,888
    Segment operating income $ 172 $ 206 $ 347 $ 439
     
    Consolidated
    Net sales $ 9,913 $ 6,566 $ 19,770 $ 13,697
    Segment operating expenses 9,527 6,160 18,919 12,785
    Segment operating income 386 406 851 912
    Stock-based compensation (144 ) (111 ) (254 ) (196 )
    Other operating income (expense), net (41 ) (25 ) (74 ) (51 )
    Income from operations 201 270 523 665
    Total non-operating income (expense) 24 27 8 34
    Provision for income taxes (49 ) (88 ) (138 ) (189 )
    Equity-method investment activity, net of tax 15 (2 ) (2 ) (5 )
    Net income $ 191 $ 207 $ 391 $ 505
    Segment Highlights:
    Y/Y net sales growth:
    North America 51 % 46 % 48 % 47 %
    International 51 35 41 40
    Consolidated 51 41 44 44
    Y/Y segment operating income growth (decline):
    North America 7 % 61 % 7 % 72 %
    International (16 ) 15 (21 ) 25
    Consolidated (5 ) 34 (7 ) 46
    Net sales mix:
    North America 55 % 55 % 55 % 54 %
    International 45 45 45 46
    100 % 100 % 100 % 100 %
    (1) Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments
    AMAZON.COM, INC.
    Supplemental Net Sales Information
    (in millions)
    (unaudited)
    Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    2011 2010 2011 2010
    North America
    Media $ 1,585 $ 1,324 $ 3,470 $ 2,921
    Electronics and other general merchandise 3,496 2,090 6,799 4,114
    Other (1) 325 176 602 335
    Total North America $ 5,406 $ 3,590 $ 10,871 $ 7,370
    International
    Media $ 2,075 $ 1,550 $ 4,147 $ 3,383
    Electronics and other general merchandise 2,398 1,399 4,684 2,887
    Other (1) 34 27 68 57
    Total International $ 4,507 $ 2,976 $ 8,899 $ 6,327
    Consolidated
    Media $ 3,660 $ 2,874 $ 7,617 $ 6,304
    Electronics and other general merchandise 5,894 3,489 11,483 7,001
    Other (1) 359 203 670 392
    Total Consolidated $ 9,913 $ 6,566 $ 19,770 $ 13,697
    Y/Y Net Sales Growth:
    North America:
    Media 20 % 15 % 19 % 19 %
    Electronics and other general merchandise 67 76 65 74
    Other 85 52 80 54
    Total North America 51 46 48 47
    International:
    Media 34 % 20 % 23 % 25 %
    Electronics and other general merchandise 71 59 62 64
    Other 25 13 20 32
    Total International 51 35 41 40
    Consolidated:
    Media 27 % 18 % 21 % 22 %
    Electronics and other general merchandise 69 69 64 70
    Other 77 45 71 51
    Total Consolidated 51 41 44 44
    Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
    International:
    Media 20 % 21 % 14 % 22 %
    Electronics and other general merchandise 53 63 51 62
    Other 13 18 12 31
    Total International 36 38 31 38
    Consolidated:
    Media 20 % 18 % 16 % 20 %
    Electronics and other general merchandise 62 70 59 69
    Other 75 46 70 50
    Total Consolidated 44 42 40 42
    Consolidated Net Sales Mix:
    Media 37 % 44 % 39 % 46 %
    Electronics and other general merchandise 59 53 58 51
    Other 4 3 3 3
    100 % 100 % 100 % 100 %
    (1) Includes non-retail activities, such as AWS, miscellaneous marketing and promotional agreements, other seller sites, and co-branded credit card agreements
    AMAZON.COM, INC.
    Consolidated Balance Sheets
    (in millions, except per share data)
    June 30,
    2011    		 December 31,
    2010    		 June 30,
    2010
    ASSETS (unaudited) (unaudited)
    Current assets:
    Cash and cash equivalents $ 2,047 $ 3,777 $ 1,629
    Marketable securities 4,308 4,985 3,479
    Inventories 3,229 3,202 1,940
    Accounts receivable, net and other 1,438 1,587 805
    Deferred tax assets 257 196 265
    Total current assets 11,279 13,747 8,118
    Fixed assets, net 3,470 2,414 1,704
    Deferred tax assets 30 22 29
    Goodwill 1,909 1,349 1,229
    Other assets 1,253 1,265 1,317
    Total assets $ 17,941 $ 18,797 $ 12,397
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    Current liabilities:
    Accounts payable $ 5,721 $ 8,051 $ 3,545
    Accrued expenses and other 2,324 2,321 1,705
    Total current liabilities 8,045 10,372 5,250
    Long-term liabilities 2,131 1,561 1,290
    Commitments and contingencies
    Stockholders’ equity:
    Preferred stock, $0.01 par value:
    Authorized shares – 500
    Issued and outstanding shares – none – – –
    Common stock, $0.01 par value:
    Authorized shares – 5,000
    Issued shares – 471, 468, and 464
    Outstanding shares – 454, 451, and 448 5 5 5
    Treasury stock, at cost (600 ) (600 ) (600 )
    Additional paid-in capital 6,675 6,325 6,056
    Accumulated other comprehensive loss (30 ) (190 ) (282 )
    Retained earnings 1,715 1,324 678
    Total stockholders’ equity 7,765 6,864 5,857
    Total liabilities and stockholders’ equity $ 17,941 $ 18,797 $ 12,397
    AMAZON.COM, INC.
    Supplemental Financial Information and Business Metrics
    (in millions, except per share data)
    (unaudited)
    Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Y/Y %
    Change
    Cash Flows and Shares
    Operating cash flow — trailing twelve months (TTM) $ 2,561 $ 2,617 $ 3,495 $ 3,033 $ 3,205 25 %
    Purchases of fixed assets (incl. internal-use software & website development) — TTM $ 575 $ 788 $ 979 $ 1,138 $ 1,374 139 %
    Free cash flow (operating cash flow less purchases of fixed assets) — TTM $ 1,986 $ 1,829 $ 2,516 $ 1,895 $ 1,831 (8 %)
    Free cash flow — TTM Y/Y growth 29 % (5 %) (14 %) (18 %) (8 %) N/A
    Invested capital (1) $ 5,820 $ 6,576 $ 7,380 $ 7,931 $ 8,551 N/A
    Return on invested capital (2) 34 % 28 % 34 % 24 % 21 % N/A
    Common shares and stock-based awards outstanding 465 465 465 466 468 1 %
    Common shares outstanding 448 449 451 452 454 1 %
    Stock-based awards outstanding 17 16 15 14 15 (13 %)
    Stock-based awards outstanding — % of common shares outstanding 3.8 % 3.6 % 3.2 % 3.1 % 3.2 % N/A
    Results of Operations
    Worldwide (WW) net sales $ 6,566 $ 7,560 $ 12,948 $ 9,857 $ 9,913 51 %
    WW net sales — Y/Y growth, excluding F/X 42 % 40 % 37 % 36 % 44 % N/A
    WW net sales — TTM $ 28,664 $ 30,776 $ 34,204 $ 36,931 $ 40,278 41 %
    WW net sales — TTM Y/Y growth, excluding F/X 38 % 40 % 40 % 39 % 39 % N/A
    Operating income $ 270 $ 268 $ 474 $ 322 $ 201 (25 %)
    Operating income — Y/Y growth, excluding F/X 77 % 13 % 3 % (20 %) (36 %) N/A
    Operating margin — % of WW net sales 4.1 % 3.5 % 3.7 % 3.3 % 2.0 % N/A
    Operating income — TTM $ 1,391 $ 1,408 $ 1,406 $ 1,334 $ 1,265 (9 %)
    Operating income — TTM Y/Y growth, excluding F/X 65 % 50 % 27 % 7 % (7 %) N/A
    Operating margin — TTM % of WW net sales 4.9 % 4.6 % 4.1 % 3.6 % 3.1 % N/A
    Net income $ 207 $ 231 $ 416 $ 201 $ 191 (8 %)
    Net income per diluted share $ 0.45 $ 0.51 $ 0.91 $ 0.44 $ 0.41 (9 %)
    Net income — TTM $ 1,088 $ 1,120 $ 1,152 $ 1,054 $ 1,038 (5 %)
    Net income per diluted share — TTM $ 2.42 $ 2.47 $ 2.53 $ 2.30 $ 2.26 (6 %)
    Segments
    North America Segment:
    Net sales $ 3,590 $ 4,126 $ 7,211 $ 5,465 $ 5,406 51 %
    Net sales — Y/Y growth, excluding F/X 46 % 45 % 45 % 45 % 50 % N/A
    Net sales — TTM $ 15,168 $ 16,452 $ 18,707 $ 20,392 $ 22,208 46 %
    Operating income $ 200 $ 186 $ 295 $ 290 $ 214 7 %
    Operating margin — % of North America net sales 5.6 % 4.5 % 4.1 % 5.3 % 4.0 % N/A
    Operating income — TTM $ 907 $ 937 $ 955 $ 972 $ 986 9 %
    Operating income — TTM Y/Y growth, excluding F/X 84 % 67 % 35 % 17 % 9 % N/A
    Operating margin — TTM % of North America net sales 6.0 % 5.7 % 5.1 % 4.8 % 4.4 % N/A
    International Segment:
    Net sales $ 2,976 $ 3,434 $ 5,737 $ 4,392 $ 4,507 51 %
    Net sales — Y/Y growth, excluding F/X 38 % 35 % 29 % 27 % 36 % N/A
    Net sales — TTM $ 13,496 $ 14,324 $ 15,497 $ 16,539 $ 18,070 34 %
    Net sales — TTM % of WW net sales 47 % 47 % 45 % 45 % 45 % N/A
    Operating income $ 206 $ 215 $ 327 $ 175 $ 172 (16 %)
    Operating margin — % of International net sales 6.9 % 6.2 % 5.7 % 4.0 % 3.8 % N/A
    Operating income — TTM $ 952 $ 973 $ 981 $ 922 $ 888 (7 %)
    Operating income — TTM Y/Y growth, excluding F/X 28 % 23 % 20 % 4 % (7 %) N/A
    Operating margin — TTM % of International net sales 7.1 % 6.8 % 6.3 % 5.6 % 4.9 % N/A
    Consolidated Segments:
    Operating expenses (3) $ 6,160 $ 7,159 $ 12,326 $ 9,392 $ 9,527 55 %
    Operating expenses — TTM (3) $ 26,805 $ 28,866 $ 32,268 $ 35,037 $ 38,404 43 %
    Operating income $ 406 $ 401 $ 622 $ 465 $ 386 (5 %)
    Operating margin — % of Consolidated sales 6.2 % 5.3 % 4.8 % 4.7 % 3.9 % N/A
    Operating income — TTM $ 1,859 $ 1,910 $ 1,936 $ 1,894 $ 1,874 1 %
    Operating income — TTM Y/Y growth, excluding F/X 51 % 42 % 25 % 10 % 1 % N/A
    Operating margin — TTM % of Consolidated net sales 6.5 % 6.2 % 5.7 % 5.1 % 4.7 % N/A
    AMAZON.COM, INC.
    Supplemental Financial Information and Business Metrics
    (in millions, except inventory turnover, accounts payable days and employee data)
    (unaudited)
    Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Y/Y %
    Change
    Supplemental
    Supplemental North America Segment Net Sales:
    Media $ 1,324 $ 1,591 $ 2,370 $ 1,885 $ 1,585 20 %
    Media — Y/Y growth, excluding F/X 15 % 12 % 13 % 18 % 19 % N/A
    Media — TTM $ 6,432 $ 6,610 $ 6,881 $ 7,170 $ 7,430 16 %
    Electronics and other general merchandise $ 2,090 $ 2,326 $ 4,558 $ 3,303 $ 3,496 67 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 76 % 80 % 71 % 63 % 67 % N/A
    Electronics and other general merchandise — TTM $ 8,069 $ 9,103 $ 10,998 $ 12,277 $ 13,683 70 %
    Electronics and other general merchandise — TTM % of North America net sales 53 % 55 % 59 % 60 % 62 % N/A
    Other $ 176 $ 209 $ 283 $ 277 $ 325 85 %
    Other — TTM $ 668 $ 739 $ 828 $ 945 $ 1,095 64 %
    Supplemental International Segment Net Sales:
    Media $ 1,550 $ 1,759 $ 2,865 $ 2,073 $ 2,075 34 %
    Media — Y/Y growth, excluding F/X 21 % 18 % 13 % 9 % 20 % N/A
    Media — TTM $ 7,480 $ 7,723 $ 8,007 $ 8,247 $ 8,772 17 %
    Electronics and other general merchandise $ 1,399 $ 1,644 $ 2,834 $ 2,285 $ 2,398 71 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 63 % 60 % 50 % 49 % 53 % N/A
    Electronics and other general merchandise — TTM $ 5,899 $ 6,478 $ 7,365 $ 8,162 $ 9,162 55 %
    Electronics and other general merchandise — TTM % of International net sales 44 % 45 % 48 % 49 % 51 % N/A
    Other $ 27 $ 31 $ 38 $ 34 $ 34 25 %
    Other — TTM $ 117 $ 123 $ 125 $ 130 $ 136 17 %
    Supplemental Worldwide Net Sales:
    Media $ 2,874 $ 3,350 $ 5,235 $ 3,958 $ 3,660 27 %
    Media — Y/Y growth, excluding F/X 18 % 15 % 13 % 13 % 20 % N/A
    Media — TTM $ 13,912 $ 14,333 $ 14,888 $ 15,417 $ 16,202 16 %
    Electronics and other general merchandise $ 3,489 $ 3,970 $ 7,392 $ 5,588 $ 5,894 69 %
    Electronics and other general merchandise — Y/Y growth, excluding F/X 70 % 71 % 62 % 57 % 62 % N/A
    Electronics and other general merchandise — TTM $ 13,968 $ 15,581 $ 18,363 $ 20,439 $ 22,845 64 %
    Electronics and other general merchandise — TTM % of WW net sales 49 % 51 % 54 % 55 % 57 % N/A
    Other $ 203 $ 240 $ 321 $ 311 $ 359 77 %
    Other — TTM $ 785 $ 862 $ 953 $ 1,075 $ 1,231 57 %
    Balance Sheet
    Cash and marketable securities (4) $ 5,419 $ 6,123 $ 8,919 $ 7,019 $ 6,503 20 %
    Inventory, net — ending $ 1,940 $ 2,515 $ 3,202 $ 2,888 $ 3,229 66 %
    Inventory turnover, average — TTM 12.5 11.8 11.4 11.6 11.3 (9 %)
    Fixed assets, net $ 1,704 $ 2,099 $ 2,414 $ 2,902 $ 3,470 104 %
    Accounts payable — ending $ 3,545 $ 4,614 $ 8,051 $ 5,540 $ 5,721 61 %
    Accounts payable days — ending 65 73 72 66 69 6 %
    Other
    WW shipping revenue $ 239 $ 270 $ 437 $ 330 $ 331 39 %
    WW shipping costs $ 487 $ 576 $ 999 $ 786 $ 820 68 %
    WW net shipping costs $ 248 $ 306 $ 562 $ 456 $ 489 97 %
    WW net shipping costs — % of WW net sales 3.8 % 4.0 % 4.3 % 4.6 % 4.9 % N/A
    Employees (full-time and part-time; excludes contractors & temporary personnel) 28,300 31,200 33,700 37,900 43,200 53 %
    (1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends.
    (2) TTM Free Cash Flow divided by Invested Capital.
    (3) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.
    (4) Includes restricted cash, classified within “Other Assets” on our consolidated balance sheet, of: $311 million in Q2 2010, $238 million in Q3 2010, $157 million in Q4 2010, $138 million in Q1 2011, $148 million in Q2 2011.

    Amazon.com, Inc.

  • Amy Winehouse’s Death Prompts Promotions, Controversy

    Over the weekend, the music world was hit with the loss of Amy Winehouse. The troubled 27-year-old singer was found dead in her London apartment on Saturday.

    Winehouse burst on the scene with her hit “Rehab” and famously battled drug and alcohol addictions throughout her short career. Although an overdose is suspected by many as her cause of death, an official cause has yet to be determined. CBS is reporting that the coroner on the case has ruled that there are no suspicious circumstances in Winehouse’s death.

    Of course when any entertainer passes, whether it’s due to tragedy or simply old age, the products of said entertainer see a surge in popularity. When famous movie star dies, we might see increased sales and rentals of their films or we might see book sales skyrocket when an author passes.

    Sales of Winehouse’s music have exploded following her death, but one retailer has found itself embroiled in a bit of controversy.

    Microsoft’s Xbox 360 PR in the UK tweeted this a few hours ago –

    @tweetbox360
    Microsoft UK PR    Remember Amy Winehouse by downloading the ground-breaking ‘Back to Black’ over at Zune: http://t.co/rWQb0CK?culture=en-gb 5 hours ago via web · powered by @socialditto

    Many felt that this was incredibly insensitive and lacking in class, as it clearly looks as though Microsoft is trying to capitalize monetarily on a tragic death.

    After receiving tons of tweets in reply such as “Stay classy, Microsoft PR Jackals” and “Talk about cashing in on someones death!” the company issued an apology in the form of two tweets –

    @tweetbox360
    Microsoft UK PR    Apologies to everyone if our earlier Amy Winehouse ‘download’ tweet seemed purely commercially motivated. Far from the case, we assure you. 3 hours ago via web · powered by @socialditto

    @tweetbox360
    Microsoft UK PR    With Amy W’s passing, the world has lost a huge talent. Our thoughts are with Amy’s family and friends at this very sad time. 3 hours ago via web · powered by @socialditto

    The question here is this: Does bringing attention to a star’s death in collusion with offering products or merchandise step over the line? Or is it just timely marketing?

    Microsoft is definitely not the only company to advertise Amy Winehouse music in the wake of her death. Apple is running and “Remembering Amy” advertisement today and Amazon has a Amy Winehouse 1983-2011 box on both its “Music” and “MP3” pages. This box links to her albums and songs, available through Amazon.

    How has Amy Winehouse’s death affected her album sales? Another question might be how well have these promotions worked?

    Well, her album Back to Black is #1 on iTunes right now. And Back to Black B-Sides is the #4 album. Her song “Rehab” is the #10 song on iTunes. Back to Black is the #2 album on Amazon’s MP3 downloads and the #1 album on physical CD sales.

    With her death, Winehouse joins music’s most famous club – the 27 club. Other notable musicians that have died at the age of 27 include Kurt Cobain, Jimi Hendrix, Jim Morrison and Janis Joplin.

  • Amazon Tablet On The Way, According to Sources

    Today, there are more rumors about Amazon’s leap into the tablet market.

    The Wall Street Journal has cited “people familiar with the matter” in predicting that the online retailer will release its iPad rival sometime before October.

    This new information seems to corroborate rumors reported last month by DigiTimes. Their sources were Taiwan-based component makers who said that Amazon planned to launch their tablet in the fall in order to capitalize on the upcoming holiday season.

    They reported that Amazon had a sales goal of 4 million units by the end of the year.

    According to the WSJ’s sources, the new Amazon tablet will have a roughly 9-inch screen and will run on Android OS. As you would expect, the tablet will provide easy access to Amazon’s ebooks, music and app store. The sources also said that the Amazon tablet will not be sporting a camera.

    According to the sources, Amazon will also release two new members of the Kindle family around the same time. The first will be a touchscreen model that will be poised to go up against Barnes & Noble’s New Nook “Simple Touch” e-reader.

    The second new Kindle will be a cheaper version of the current basic Kindle. If the rumors prove true, both will try to compete in a crowded field of e-readers during this holiday shopping season.

    Can an Amazon tablet compete with the dominance of the iPad? It’s hard to say. Nothing has really been able to challenge the iPad’s place atop the throne. According to other rumors, the newest iPad will debut this fall under the name “iPad HD.” It will sport an incredibly high-res screen (2048 x 1536) and would be primarily for professionals who wish to do serious work on their tablets.

    [Image Courtesy]