Is There Anything That Amazon Can’t Do?

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April 25 (Bloomberg) –- Kantar Retail Digital Retail Director Stephen Mader discusses Amazon’s earnings and their strategy of investing at the expense of profits. He speaks to Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

"countdown," imi burton.

-- im mark barton.

Good morning.

Investing at the expense of profit.

The right strategy?

That has been the amazon strategy for almost 20 years.

Sacrificing a little bit of short-term profitability for investing for the long term growth.

Amazon has done the same thing they have always done.

It invest in fulfillment centers.

Platform improvements for the longer-term vision be required the customer and investor do not seem to mind because shares rose.

It seems the customers are happy.

They have a lot, don't they?

We have seen in europe and the u.k. and germany, they have sunsetted there netflix like service and integrated that into amazon prime.

They are always added value added services on top of amazon prime rate -- prime.

They raise the membership price by 25%. that offset some of the increasing cost.

Absolutely.

When prime first came out, they have not increased the price at all.

That is the first price increase we have seen.

In the u.k., germany, and the u.s.. they are moving into all sorts of areas.

What they are doing with the internet and downloading videos.

What about the grocery service?

Amazon prime pantry.

As with -- as they move into consumables and catering to the grocery shirt -- trip.

We have seen amazon fresh.

It is very difficult to send through the mail.

Difficult to send the post, being big bulky porches is -- purchases.

I have tried to reinvent the economics behind that.

They charge a little bit of money for that, six dollars on top of the prime membership.

Are supermarkets clicking on their boots?

I would say longer-term it is something you cannot ignore.

This is not amazon testing something and it going away.

It is a long-term dismantling to move into groceries.

Amazon consumable share is relatively small right now.

But that is only going to increase.

They are going to compete with the supermarkets, the likes of apple and google's android.

We have heard they are developing a smartphone.

It would not surprise me if amazon succeeds in that space.

They have done a very good job, they have a good track record with the kindle fire.

It seems like it is going very well.

In the last quarter.

They have been very quiet.

Programs and movies.

This is the -- it is similar to the apple tv and the rococo.

-- roku, turning the tv into a content portal for amazon.

Watch her amazon video and see pictures and play games.

They are going to be offering various old series on prime?

Love film, when it was merged -- are they going to have to pay more on content?

And what about content they generate themselves?

Content is a big play for amazon continuing forward.

Yesterday, they announced that hbo has been bringing a lot of their older content onto amazon.

Which is a big historic moment.

One of the big push backs for the fire tv when it was first announced, that it did not have hbo.

We don't know how much they paid, but it is probably in the hundreds of millions of dollars.

This is a very big play for them.

They are lacking up -- locking up the content.

They see them as the different ureter this differentiator between them and netflix.

They have internal publishing and producing.

A lot of that is focused on children.

The amazon family is a very big driver of strategy.

How can i comment as amazon, cater to the needs of the family?

Do see them spending in the likes of $100 million like netflix on producing series because of cards.

They wouldn't that same model where shoppers are -- what to have that same model where shoppers want to stay on prime.

Locking in the prime loyalty.

Part of that is through exclusive content.

Is there a thing jeff bezos cannot do?

Is there any way you think he should stop?

I think it is important to keep in mind that amazon is a technology company.

It is an innovative company and they are willing to test the waters in different markets.

They do a lot of different things.

I wouldn't is paid anything is

This text has been automatically generated. It may not be 100% accurate.

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