Last quarter, Amazon invested $100 million in original video content. Szkutak alluded to a"very competitive environment both online and offline, which isn't anything that’s new, but we are seeing a lot of new competition" in programming, which seemed like a call-out to CBS and HBO, which both revealed new streaming services just days ago.
"We have a number of pilots and series we launched," he said, adding the series "Transparent" has performed well. "We continue to invest heavily in video content, and there are number of different metrics we’re looking at … We’re seeing customers who stream through Prime, renew, and we're seeing parallels between streaming and physical purchases from customers tuning in to original or licensed content."
He insisted Prime is doing well, and said - in response to an analyst's question - the fact that Target offers free shipping automatically whereas Amazon requires a $35 minimum threshold isn't an indication that Prime is underperforming.
Amazon's holiday sales projections were weak. Analysts expected upwards of $31 billion, while Amazon's projection was in the $27.3 billion to $30.3 billion range.