Amazon loses USD1bn a year on video service, claims Netflix CEO

Neflix CEO Reed Hastings believes Amazon could become a major player in the online video market in the future, but suggests the firm will have to invest a substantial amount before it can compete with Netflix. Speaking to Dow Jones, Hastings estimates that Amazon is losing between USD500m and USD1bn a year on its video operations, as it is forced to spend money on licensing rights and getting consumers to sign up to the service. His comments serve to highlight how difficult, and expensive, it is to get into the online video streaming space, with the likes of Hulu, Netflix and Amazon all struggling to turn a profit from their services.