Amazon.com, Inc. (AMZN) Tackles Social Space With This Acquisition

Netflix wants in

Not one to be left out, Netflix, Inc. (NASDAQ:NFLX) recently added social sharing to its service. The company, which announced an $8 million profit in the last quarter of 2012, described “Netflix Social” as a way to connect with friends for recommendations or simply to learn what others are watching.

Netflix’s membership is expected to continue to grow thanks, in part, to original content the company is producing. The company needs to begin to experience consistent profits to thrive, though, and social media can help promote these shows.

The social aspect of the Amazon-Goodreads partnership will hopefully have a similar impact. When a Goodreads member announces a book he or she is reading, that draws more attention to the book, encouraging a purchase and bringing more cash Amazon.com, Inc. (NASDAQ:AMZN)’s way. Goodread members are constantly building their “bookshelves,” letting other members know what they are reading–by adding this “check in” ability directly to Amazon, the company may lure even more customers over to buy books through Amazon, again only strengthening the company’s earning potential for 2013.

Perhaps Amazon, like Netflix, Inc. (NASDAQ:NFLX) and DirecTV, has realized the value of giving customers an easy way to interact with others. While both Goodreads and Amazon aren’t yet releasing all the details about the deal, Goodreads mentioned that the move will allow for easier interaction with Goodreads on Kindle devices. By being able to see recommendations from friends and family directly on their devices, Kindle owners may be encouraged to buy more books, helping increase Amazon.com, Inc. (NASDAQ:AMZN)’s annual profits–in essence, putting cash directly in investor’s pockets.

The article Amazon Tackles Social Space With Goodreads Acquisition originally appeared on Fool.com and is written by Stephanie Faris.

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