Dropping Profits Sends Amazon In Odd Directions
tabdelgawad writes "The Washington Post has a story detailing how Amazon has purchased the rights to turn a recently published book into a feature-length movie. The article also outlines other 'strange directions' Amazon has taken in response to declining profits and a plummeting stock price, including moving into the grocery business and producing original live webcasts and streaming shows."
In the business world, it's a jungle out there.
They probably got him to sign over the rights for nothing and then started pushing the book to set up the movie: Poor guy. Sounds like another Anthony Burgess who sold the rights to make A Clockwork Orange into a movie to The Rolling Stones for around $5,000.
This kind of reminds me of a media outlet gone wrong. Or American Idol informing people of what good music is. You really have to wonder if Amazon found this book and said "this is a really good book" or if they said "find me a book that will translate well to the big screen."
You want to make money? Find an acceptable product or well known name and shove it down America's throat. Instant cash. Examples: Mission Impossible 2, corporate boy bands with music written by teams of people, any media that follows a standard high selling formula, etc. Next up? Amazon studios presents their new movie
In TFA, they even admit it:
My work here is dung.
...for patent abusers.
"Ha-ha!"
They could always sell their "one click" technology.
One of the most depressing things about the IT world is the number of books one must read for a subject, consider C, it takes many books for one to become a guru, but other more 'modern' languages are simplistic, and perhaps one or two books is all it takes to grasp java/c#/python etc etc.
Could this be the result in the change of trends?
Has wikipedia and it's subordinates taken the place of the dead tree library?
Why UNIX?
That's weird, my (uninformed) perception was that Amazon had solidified it's place as the king of of the hill and was doing exceedingly well.
Funny how you don't really know who is really succeeding until you look at the bottom line.
Is it possible that the big web 1.0 succeess like Amazon and Ebay might be toppled by some as yet unidentified jauggernaut the way Microsoft toppled WordPerfect and Lotus123 back in the day?
boxlight
At this point I frankly prefer Barnes and Noble to Amazon. B&N has finally caught up with Amazon as far as I can tell in terms of hugeness of inventory for books and DVDs, and all that stuff Amazon sells that isn't books and DVDs... well, who cares? This zshops thing is just a crappy version of eBay, and there are better places to buy used books.
What I've really found that's interesting lately is that if you order from bn.com from inside of a barnes and noble brick and mortar store, they waive shipping. So if I want something, I can stop at a B&N on the way home from work; and if they have the book I want I can go home with it immediately, if they don't have the book I can just ask them to order it from the website and I get it in a few days without even having to pay for shipping. It's kind of the best of both worlds.
Plus Amazon's switched to this MSN Live Search nonsense. What purpose does amazon.com serve at this point except as a repository for politically biased book reviews? As far as I'm concerned, screw 'em.
i don't shop there anymore because your stuff dosen't come directly from them anymore. you now have to deal with shipping fees from 6 different companies to place one order. screw that!
"Come away, human author, take a venture capitalist by the hand/for the stock market's more full of bullshit than you can understand."
It is inevitable that Amazon would chase businesses that offer better ROCE than their core. They took on tremendous debt to build a distribution infrastructure and see single digit profit margins as a result. Meanwhile, "virtual" companies like eBay, Google, Yahoo, etc. are able to get better returns on their assets. In the past, Amazon tried to be an e-commerce platform and license their services to Toys R Us and other firms but ran into problems because they were essentially hosting sites for their direct competitors. Now, they are trying to branch into unrelated "virtual" companies like search, media, etc.
ByteMyCode.com: A Web 2.0 code sharing community.
I'm a bit surprised by this as my spending at Amazon has only increased in the last 8 years. Amazon is my preferred supplier of books and games. I'd say more people are doing so.
I hadn't the slightest objection to his spending his time planning massacres for the bourgeoisie... (P.G. Wodehouse)
I'll post anonymously since this is clearly redundant.
wild amazonians purchase rights to stolen boy!
movies of this exploit to be sold online, leaving authorities confused and aghast!
stocks plummet.
I thought the same thing when reading the article. 30,000 copies is absurd compared to better selling books that never stand the chance of making it on the silver screen.
I have a suggestion.
Prawns.
Sell streaming, high quality prawns.
Crappy business model.
I used to work at a company that did the same thing. What they did, they did poorly, because management had a poor attitude toward employees, customers, and partners.
Rather than fix these things, which would have soiled their resumes by admitting error, they desperately attempted to cut costs to ridiculous extremes and move into new market segments that didn't in any way leverage their strengths.
Last I knew, they were still losing money (now that they can't cut any further) and competent employees were fleeing for their lives to much better and more stable opportunities.
If you haven't foed me yet, what are you waiting for?
The motive behind making this into is a movie is the special effects opportunities and Amazon needs a hit to bail itself out of the toilet. They're praying for special effects. That's it.
They know that eye candy sells and that's what they're banking on. You shouldn't see a movie for superficial reasons.
-- Identify the sh*t that the movie industry and corporations are trying to shove down your throat and avoid it. How many DVDs are sitting on your shelf that you've only watched once? How many movies have you walked out of thinking that you were just jilted out of $10? Don't let it happen to you. If a movie is over marketed and smells of crapulence (Batwoman, anyone?) don't see it. Teach them a lesson.
..... Can we get back to posts about Google?
This is my opinion. To make sure you don't steal it, it's covered by the DMCA.
It's not as if Amazon has been making money for very long. If I'm to believe wikipedia, they weren't actually profitable until 2003.
Revenue is up, traffic is up, but earnings are down. That is accountantcy jargon that translates as: "We are doing more but doing it less efficiently". And the stockholders noticed. They began selling.
When Amazon management noticed that, they looked for some new way to use their cash and traffic to make return on their investment. Why movies? Probably because the movie business requires - among other things - up-front investments and lots of advertising. It makes sense.
"wild amazonians purchase rights to stolen boy!"
I wonder what ever happened to them. They just weren't the same after the lead singer and the drummer left in 2003. I hope Amazon re-release their entire catalogue.
Where were you when the voynix came?
Amazon used to be so organized, but now its categories are vitually worthless. I search for USB thumb drive, I get 10,000 thing unrelated to it even when I'm in the correct category I get non-thumb drives and there are several nice thumb drive not in the correct category. For computer stuff now I go to newegg.com, at actually organized.
Or could it be the slowing economy causing Amazon's profits to drop? I mean, having to pay for your McMansion and to fill up your 10mpg SUV has to dip into your discretionary income...but yeah. I can't imagine Amazon making movies. *shrug*
US businesses that currently accept chip and PIN/signature
Amazon should look into it's own Gold Box and hope it finds a discount on a corporate diversification plan.
It has seemed to me for a while that Amazon is slipping. Their web site, long a model of clarity and usability, has become confusing with the proliferation of non-Amazon sellers. For example I recently did a search for a book and the top listing in the search results was only for used copies, while if I clicked the second listing I got the usual Amazon page for the book. Since you can buy used copies from the main page for the book, I don't even understand why the separate page existed, let alone that it was the first search result.
I have also had several bad experiences with free shipping. In one case, I ordered Christmas gifts well in advance. After a week or so, they moved the expected shipping date past Christmas due to the item supposedly being out of stock. I complained by e-mail (why were they only telling me this after the original shipping date had arrived) and they apologized and shipped it immediately. Umm, was it in stock or not? It could have been a supplier issue, but I also wondered if they were just trying to see how I would react.
I have returned to buy.com after ignoring them for several years. Rotten-looking web site with very poor information about items. But I have found them faster and often less expensive than Amazon.
I expect that Amazon will survive for a very long time and do lots of business, but I don't see how they're ever going to be highly profitable.
The article says 'profit projections disappoint ' - this means amazon cannot match the growth they had the last 5-8 years anymore. I think its normal for a company of the size of Amazon.
But I am curious how 'filmy business' will increase the profit of Amazon? If you make 5-8 films one might become a hit and rest (if you are lucky) will breakeven. If you make a really good film, over several years it will give you a profit - but that is not going to reflect on your quarterly statements/projections.
I think they are tempted after seeing the DVD sales of films like CRASH (sold more than 5 million units.)
Tat Tvam Asi
Will the studios ever come up with something new, instead of churning out just another movie remake?
When you concentrate your efforts on patenting "one-click sale" and other similar "innovations", the core business suffers. That's why I never shop at Amazon, even if the price is OK which, by the way, practically never happens lately.
For tech books, see BookPool
I think they've gone terribly wrong in the level of integration they have with these 3rd party merchants.
There is no way to limit searches for items to be stricly from Amazon. I've had mixed experiences with the 3rd party folks, and really I would prefer to buy directly from Amazon, but hunting through hundreds of search results to find what Amazon ACTUALLY sells is incredibly difficult and a major PIA. This has sent me to others for recent purchases.
"Send", dammit! What's so hard to get about subject-verb agreement?
Media that can be recorded and distributed can be recorded and distributed.
-kfg
Call this post flame bait, but I have to ask, how would Microsoft do a movie?
for however many years. I've bought once or twice, but only after I couldn't find it on abebooks or cdconnection. I doubt that's what's done it but it's nice to see things go your way :)
Someday we'll all be negroes
I have to agree with you, thy're going down hill.
Same here. I've bought a lot of books at amazon a while ago, but not anymore. When I compare the prices to the countless other places selling books online, they don't have the advantage, and often they don't have some of the books I want (some are moderately hard to find), while others do... And if you ever want a book in any language other than english (like french), then amazon (.ca) is the worst of all the online stores (we've got bn, chapters.ca, renaud-bray, archambeault, etc). Their selection of french books is at most 5% of what the others have (and again, prices being higher than the other places...)
And I've been receiving what I'd call spam from amazon lately. I don't mind a little bit of emails for promotions that could interest me, but I'm getting emails more like:
you've bought this [photography] book, and we've noticed people who bought that book also bought [some other photography book] by Mr Smith. Mr Smith just put out some boring stupid fiction romance story or such [a category of books I've NEVER bought from before], so we thought you'd be interested...
I've opted out of their emails, have blocked their address, and will not buy anything from then anymore.
As far as their book reviews go, they're heavily biased indeed. I wouldn't base my purchasing decision based on that. I buy the books I know are good (seen them at the library before, like the publisher/author or such)
I am definitely happy with my decision to not accept a job offer with Amazon.com. I was recently flown to Seattle to interview with Amazon.com for an accounts position, specifically dealing with their new toy division.
During the interview, I stayed in the conference room where 4 Amazonians interviewed me, one after another. I was annoyed that the interviewers were asking the same questions. They pretty much were reading off a script; however, the third interviewer at least was different enough to keep away from the script and go to the whiteboard for a quick logic session.
THE SHOCK. The offer that Amazon made me was laughable. When I was informed of the offer I asked if this was for real, and how this compared to other wages for the position. I was told that the offer that they gave me was on the high end.
I was utterly disgusted at the offer, and couldn't understand why they even bothered to fly me up to interview. After all, for the wage they gave me, Amazon could simply have recruited from the Seattle region.
Only after talking to those who were experienced with Amazon.com I realized that Amazon had horrible working conditions. Their benefits are lousy, and they pay many University level positions by wages. Yes Wages.
In the end I quickly realized they don't conduct what we business folks regard as a "balanced score card." That is balancing the needs of ALL Stakeholders. Stakeholders obviously include employees, investors, etc... From my point of view Amazon was way too focused on employee cost cutting. From my observation, they placed very little of that into human capital, and instead hope their brand name and aging business model will carry them forward into....well I don't know what.
I must admit, though, that I wish there were an "advanced search" feature beyond the current offering, including the ability to limit results to products shipped by Amazon itself.
Si la vida me da palo, yo la voy a soportar Si la vida me da palo, yo la voy a espabilar
Does anyone else see this as a test of Amazon's capabilities? What if it works, and the film is a hit? I see them selling marketing services for unknown books, overlooked films, and unheard of directors. And using "The Stolen Child" as their poster child.
They are patenting the idea of taking a published book and turning it into a movie.
"Trademarks are the heraldry of the new feudalism."
save the empire!
Sure, the inventory's huge, but Amazon is cumbersome to browse. More and more of their listings are obsolete and no longer stocked, and too many are just listings for 3rd-party sellers. Amazon's prices aren't that great, and the customer feedback is actually more limited than what some other sites offer. Customer support is bureaucratic too.
In the brick and mortar world, a big department store can beat small specialty stores because one-stop shopping really saves time. But it doesn't take long to hop from one website to another. If Amazon's corporate goal is still growth through diversification, it could become a dinosaur and lose business to more-narrowly focused competitors, which often sell at lower prices (e.g. Bookpool) and are easier to shop (e.g. Newegg).
Resell the previous movie, but make the film reel out of green and blue plastic instead of grey metal. Don't forget to delay the launch date by a few years.
I boycotted Amazon when their managers started firing people for being gay, against their own corporate policy. Their excuse: 'Oh, we only follow that policy when local laws demand it.'
What do they call that? 'Bait-n-Sack'?
Amazon has taken on the msft management model... watch what everyone else does and copy it. Starbuck's just released their new movie not to long ago...
ref=... hey? trying to make some money off of unsuspecting slashdotters?
There are two types of people in the world: those who divide people into two types and those who don't.
Perhaps the tail is wagging the dog here. It doesn't take very much for employees with control of the purse strings to ruin a company. Stocks go up and down, but after the Dot-Com debacle, the people investing in places like Amazon are probably intelligent and aware enough to realize when Amazon is on the wrong track. Amazon is really just a mail-order company regardless of whether or not it is accessed via computer. It seems to me that their profits would therefore depend on general trends in consumer spending. If Amazon keeps forgetting where their profit centers are and develops a Napoleon complex, they'll eventually fail.
Cowbells.
They could crete a service that inserts more cow bells into your downloaded music!
I got a fever! And the only prescription.. is more cowbell!
The Kruger Dunning explains most post on
I recall Starbucks doing something somewhat similar not too long ago. Taking an independant movie that was sure to flop and promoting the heck out of it at its stores.
It's not uncommon for a business to throw some cash at other ventures. Afterall, any smart business person knows that one day their time will come. If they put all of their eggs into one basket, they're doomed. Companies that have died were the ones that could not see this.
-David
Years ago, they sent me an unsolicited SPAM message. At that point, I vowed never to do business with them.
Two words Customer Service. Have you ever tried calling them? The call center is somewhere in India, I tried for 20 mins to fix an order for a product that cost over $2000. I had placed an 'older' version of the software in my cart and they canceled my order. I wanted the new version, but the customer service person did not know what I was talking about and was not able to fix the order. I gave up and called CDW who has an American call center. I had the same version problem on their web site, but the American operator was able to straighten it out.
Actually, it's simpler than that. Business school 101, which still holds true today: Any business that competes on price alone is doomed. Amazon doesn't offer anything other than a low price. With a low price, all you do is cut your own throat with non-existent margins. Somebody will ALWAYS be cheaper, anyway.
They suck. Amazon contacted me about adding my retail business (brick and mortar and online) to Amazon. I said, "of course", and started the integration. When I got finished, I did the math, and realized that their fees and their fee structure would make us actually lose money on many purchases through Amazon.
More importantly, what you said holds true from the merchant persepctive. Sure, I may be able to sell a lot of stuff through Amazon, but it does nothing for my business. Why? Because of what you said: there is ZERO brand recognition for the merchant. There's no chance of repeat business or building any kind of brand when selling through Amazon. They put everything under their umbrella except for the biggest of big merchants.
Why would I want to sell stuff for almost no profit, and earn no brand recognition for it? Suffice to say, even after a lot of programming, I told them that my company wasn't interested.
When any company tries to diversify into an area that is to far from their core business it causes trouble, and quite often collapse. Best current example: AOL-Time-Warner, What does anyone at AOL know about publishing (Time) or movies/music/TV networks (Warner Bros.)? What does anyone at Time truly know about the core business of the other two? Why is this company in trouble? Worldcom took a very good long distance telephone company (MCI) and tried to turn it into something else, splat! If Amazon would concentrate on fixing the original business and provide good customer service they would continue to make a decent profit. What do they need to fix? Read many of the comments already posted, there is quite a list of good suggestions.
Professional Politicians are not the solution, they ARE the problem.
There's no chance of repeat business or building any kind of brand when selling through Amazon.
Out of curiosity, do you (as the third-party merchant) get to see enough information about the end-using buyer to market to them directly at a later time? Meaning, is it against the Amazon terms/conditions to follow up those sales with an e-mail or postcard or other communication to the person with whom you ultimately did business? Just wondering.
Don't disappoint your bird dog. Go to the range.
or rather something even less common - I find it hard to believe you got fired for being gay. But not being that close to the guy, I can't say I know the culture really.
Someday we'll all be negroes