Amazon Gearing up for Global Launch of Streaming Video Service
The expansion into about 200 countries would introduce a formidable competitor to Netflix
By Shalini Ramachandran
Nov. 17, 2016
Amazon.com Inc. is about to have a massive global rollout of its streaming video service. The e-commerce giant will expand its video service into 200 countries. Its video streaming service is currently only in the U.S., the U.K., Germany, Austria, and Japan with a planned launch in India. Amazon's expansion will have a direct impact on competitor Netflix. The announcement was made through the actors and crew of Amazon TV show " The Grand Tour" which debuts on Nov. 18.
Amazon's rollout means that another deep-pocketed tech company that has strong Hollywood connections will be vying for a piece of the streaming market. Netflix mainly competes with local players Amazon's global expansion would introduce a competitor to Netflix around the world. Netflix is currently streaming in 190 around the world after having expanded into 130 countries this past January. Amazon's global rollout will likely lead to higher costs - potentially $4 billion to $5 billion in annual outlays on video and will cause Amazon to miss Wall Street's profit expectations for the third quarter. For now it is unclear how big Amazon's content library will be when it launches world-wide. It generally owns world-wide streaming rights for original content created through Amazon Studios. Amazon will most likely have to acquire international rights other studios licensed contents.