retail news in context, analysis with attitude

Variety has a piece analyzing Amazon.com's business strategy, suggesting that the company "is on a quest not unlike the one Apple chose several years ago: A multi-front war to dominate key aspects of people's leisure time."

During the Q1 2012, the story notes, "nine of the 10 top-selling products on Amazon.com were digital. While that includes e-books for the company's Kindle, it also included movies, music and apps. Amazon, of course, will continue its retail battles with Wal-Mart and other stores, but increasingly these days, it's setting its sights on Netflix, Hulu and, of course, Apple. And some of those fights could get ugly."

As Amazon looks to increase its footprint in the digital space, CNN reports that "Netflix has officially unseated Apple in one major field: online video. Netflix jumped to No. 1 in market share on a revenue basis, as subscription video soared in popularity - an area where Apple is missing out." (The story notes that "Netflix offers an unlimited streaming-only plan for about $8 per month, while Apple doesn't have a subscription service. Instead, customers can buy movies and TV episodes from the iTunes Store.")

In fact, the Netflix share of the online movie business was 44 percent in 2011, while Apple's dropped from 60.8 percent in 2010 to 32.3 percent in 2011.
KC's View: