Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member., Inc. (AMZN)’s Risky Play May Unlock Value, Inc. (NASDAQ:AMZN) is entering an incredibly dangerous industry in the movie business, Paul Sweeney said in a discussion with Trish Regan and Cory Johnson on Bloomberg’s Street Smart.

The comment comes after, Inc. (NASDAQ:AMZN) announced at the start of the week that it intends to make about 12 movies every year. The everything store is planning to release these films to theaters and then make them available to Amazon Prime customers within two months.

“It can be [lucrative] but it’s a very risky business and that’s why most movies, most films are created by these large media enterprises such as Time Warner [and] Viacom. It is a very high cost business, very high risk business,” he said.

Nonetheless, even though, Inc. (NASDAQ:AMZN) is entering a very competitive and cost industry, Sweeney notes that it does bring a lot of value particularly because of rights.

“[…] A lot of people see the value in the backend ownership of content whether it’s through traditional syndication around the world which has gotten better and better as more of the world has embraced broadband and video content,” Sweeney said.

He added that, Inc. (NASDAQ:AMZN) will be producing the content themselves and in fact the company has announced that they have signed Woody Allen to create his first television show for the company, a move some derided as meaningless for the company.

Amazon, is Amazon a good stock to buy, Paul Sweeney, Cory Johnson, Trish Regan, risky business

Meanwhile, Cory Johnson said that even though the cost may be high, Jeff Bezos and company has recognized the value of having a hit production. Netflix with its “House of Cards” production has generated free marketing because of the popularity of its show and the awards it has been given, he said.

This new attention to the company, particularly if the productions are good, will in turn generate income by attracting more Amazon Prime subscribers, Johnson added. Sweeney agreed saying that Amazon knows its Prime customers spend about four times as much on Amazon compared to regular customers and the company is just trying to make Prime more attractive to people.

Patrick Mccormack’s Tiger Consumer Management owned 208,900, Inc. (NASDAQ:AMZN) shares by the end of the third quarter of 2014, a 30% decrease in the fund’s stake in the electronic commerce giant quarter-over-quarter.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!