Amazon Earnings, Amazon in the Home
Prior to heading off for vacation, we went over my thoughts on the U.S. v. Google verdict (Part 1 and Part 2). The two updates covered quite a bit. On social media, there continues to be a surprising number of people claiming default distribution contracts are under attack. Considering how the judge explained such arrangements are legal, it’s clear many people didn’t bother to read the verdict.
Earlier in the month, we took a deep dive into Apple’s 3Q24 earnings. While anticipation always rises heading into September thanks to the iPhone and Apple Watch rumor mill, expectations regarding what Apple will unveil remain in check. The same can be said for Apple Intelligence. There is growing acknowledgment that the rollout will be measured and gradual.
At this point, we will circle back to reviewing CY2Q24 earnings from some of Apple’s competitors. We already went over earnings releases from:
It makes sense to begin with the remaining Big Tech companies and then work our way down into certain verticals (i.e. streaming video). Today’s update will focus on Amazon’s earnings. It’s been six months since we talked about Amazon earnings (we skipped Amazon’s 1Q24).
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Branding in Paid Video Streaming, Amazon 4Q22 Earnings (Daily Update)
Hello everyone. We will begin today's update with one topic from yesterday that deserves more attention: branding in video streaming. Branding will gain importance as competition intensifies. The discussion will then turn to Amazon earnings. We go over Neil’s thoughts on the company’s 4Q22 earnings release and conference call.
Let's jump right in.
Branding in Paid Video Streaming
One of the more controversial debates in paid video streaming has been found with branding.
A few years ago, Bob Greenblatt, formerly of WarnerMedia, claimed Netflix lacked a brand:
“It's just a place you go to get anything -- it's like Encyclopedia Britannica. That's a great business model when you're trying to reach as many people on the planet as you can."
At the time, his comments lit a firestorm in various streaming circles. Some people thought he was right while others thought he was clueless. My view was that he was more right than wrong. Greenblatt was referring to Netflix not having any discernible content branding. While Netflix has had hit shows, the service was known more as a destination for consuming general video entertainment. “Watch Netflix” was used by some to simply mean watch TV.
HBO wrapped its brand around marquee shows. Say HBO and “Game of Thrones” or “Succession” probably comes to mind.
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Amazon 3Q22 Earnings, The Shift in Selling Amazon Prime, Microsoft 1Q23 Earnings (Daily Update)
In today’s update, we wrap up our earnings reviews for the four tech giants (and Meta) by circling back to cover Amazon’s and Microsoft's CY3Q22 earnings. To recap, these are the dates when we covered earnings from the others:
The five companies represent 21% of the S&P 500 index. The discussion includes Neil’s thoughts on the most interesting takeaways from the reports.
Amazon 3Q22 Earnings
Amazon reported 3Q22 results back on October 27th, one day prior to Apple’s earnings.
Overall, the quarter was more negative than what the company reported three months earlier.
Amazon has stood out among Big Tech for facing the most direct impact from macro issues.
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