Netflix CEO: Amazon is ‘awfully scary,’ and a thing of wonder – The Seattle Times

Reed Hastings assessment reflects similar thoughts in various industries, from retail to cloud computing, book publishing, streaming music and logistics all businesses that are being ruffled by Amazon as it stretches its operations across the economic landscape.

Seattle Times business reporter

In the eyes of Netflix CEO Reed Hastings, Amazon.com seems to fall somewhere between horror movie character Freddy Krueger and Chtulhu, the legendary, multi-tentacled monster-god dreamed up by H.P. Lovecraft.

Theyre awfully scary, Hastings said Wednesday on CNBCs Squawk Box when asked whether the Seattle company, which has recently been investing billions in streaming content that competes directly with Netflix, was his biggest threat. I dont know if theyre the biggest, but theyre awfully scary.

Hastings assessment reflects similar thoughts in various industries, from retail to cloud computing, book publishing, streaming music and logistics all businesses that are being ruffled by Amazon as it stretches its operations across the economic landscape.

Over the past couple of weeks, Amazons name has popped up in more than 100 conference calls held by publicly traded companies, according to a search of transcripts from S&P Capital IQ. In those calls, Amazon is often referred to as a partner, a competitor, or an example to emulate, even by companies whose core businesses are only a sideshow for the e-commerce giant.

Take Netflix, which streams content on the internet, and spends billions acquiring films and television series and even producing its own.

For Amazon, streaming content is not a mission but the means to an end to encourage customers to subscribe to its Prime membership program, which cements their loyalty to the Amazon e-commerce ecosystem. Yet Amazons ability to invest vast sums of money in premium content some of which has scored Oscars and Golden Globes is giving other content streamers a run for their money.

For Hastings, Amazon is not only scary, but a thing of wonder. Amazons ability to invest simultaneously in many industries is unique. Its like theyre trying to repeal the basic laws of business, he told CNBC. Were continuing to watch them and be impressed with them.

Read the rest here:
Netflix CEO: Amazon is 'awfully scary,' and a thing of wonder - The Seattle Times