Dallas, Texas 07/18/2014 (FINANCIALSTRENDS) – Amazon.com, Inc. (NASDAQ:AMZN) ceases to be the simple ecommerce portal to started out to be. True to its name-sake it has grown enormously staking claim to changing complacency in many online verticals – books, music, films, other media, entertainment as well as products as diverse as the portable sewing machine to kitchen accessories. With such a diversified product portfolio and the revenue to match due to the massive global footprint, then which would it be looking to foray further in the media vertical?
The answer lies in the recent cue by Rupert Murdoch, who literally owns the media in nearly every continent, to place a bid to acquire media’s premier publication – Time Warner Inc (NYSE:TWX).
The move to consolidate his reach across the verticals through his Twenty-First Century Fox Inc (NASDAQ:FOXA) has actually been a headwind for the likes of Amazon.com, Inc. (NASDAQ:AMZN) and perhaps the likes of Google Inc (NASDAQ:GOOG) as well!
Though, Time Warner Inc (NYSE:TWX) did defer the $80 billion offer, what it actually did was to let Amazon realize the immense opportunity ‘content creation’ would offer for the likes of multi-media operators.
For if Time Warner had conceded and approved the acquisition, it would have meant, Twenty-first Century Fox would become the largest media company in the world and also gain ownership of HBOs ‘Game of Thrones’ as well ‘The Lego Movie,’ since Time Warner recently came to own HBO fabulous content wealth.
HBO has developed its own content for some time and has been the key to build its prime content and subsequent viewership which have now converted to high-paying subscriptions and revenue for the Channel.
Therefore, content creation is where revenue lies in the near future and Amazon.com, Inc. (NASDAQ:AMZN) is not the one to be found wanting, when an opportunity opens! Netflix has already shown the way forward in this niche with its premium ‘House of Cards!’