Amazon.com, Inc. (NASDAQ:AMZN) is reportedly getting into new sectors like travel business and ad supported streaming services. Amazon’s CEO Jeff Bezos is well known for his idea of venturing in different sectors and create various revenue streams. But how will this new idea of venturing into travel business work, considering the upcoming holiday season and already crowded travel business space. Re/Code Co-Executive Editor, Kara Swisher talked on CNBC about her views on Amazon’s new business.
Swisher said that Bezos keeps trying to do things. She feels that Amazon.com, Inc. (NASDAQ:AMZN) keeps adding more and more services to their portfolio. She pointed out that they sell a lot of stuff and the new venture into travel business stands adjacent to their core business. She agreed that the ad supported streaming service makes a lot of sense, since they have already had a success in that sector with Prime, but she thinks that they have already hit the saturation point with the number of subscribers in Prime.
“[…] There is a lot of other people in that business, FYI. So I think lot of these companies are trying to move into adjacent businesses that they like to like Google getting into document. […] They are getting into each other’s business. Interesting, but there are a lot of very successful already in the travel business,” Swisher said.
Since Prime was supposed to be the common umbrella, where every streaming has to go out from Amazon.com, Inc. (NASDAQ:AMZN), why they have decided to come up with another streaming service? Swisher thinks that Amazon.com, Inc. (NASDAQ:AMZN) are looking for an alternate stream of revenue generation through the new ad supported streaming service. She added that many people might not pay a $99 subscription fee per year to avail services of Prime, since competitors like Netflix, Inc. (NASDAQ:NFLX) offers better services with better shows. She thinks that it is up to the ability of Amazon.com, Inc. (NASDAQ:AMZN) to get better deals for the consumers like movies and shows to enhance the chances of gaining subscribers for their streaming services.
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