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CandW discuss Amazon keeping the flywheel spinning

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Amazon keeps coming up with ways to improve its business. It reached a deal with Google that brings YouTube back to Fire TV products. It has found a way to get Twitch to boost the number of Prime members. Both help keep the Amazon flywheel spinning.

Jeff Bezos, Amazon CEO, often talks about the Amazon flywheel spinning. By that he means how one service helps another. There are two prime examples of the flywheel effect in the news this week.

Chapter 1: Amazon and Google bury the hatchet (0:50)

A couple of years ago, Amazon and Google fell out over Amazon’s decision not to sell come Nest products, and Google pulled YouTube from Fire TV devices. It now seems the two companies have come to an accommodation which should be useful for users of their products and services.

Chapter 2: Fire TV market share in the US and Europe (6:20)

Fire TV devices are a close second in the U.S. to Roku and lead in Europe. We discuss the numbers. We also discuss how important YouTube is becoming to the television experience.

Chapter 3: Amazon boosts prime memberships with Twitch (6:20)

Amazon has made two changes to Twitch that should help increase the number of Prime members. The first involves allowing the premium streamers on Twitch to charge a subscription for their channel. The second tie exclusive benefits for viewers, including one free channel subscription, to membership in Twitch Prime. To become a Twitch Prime member, the user must tie their prime membership to their Twitch account.

The Twitch changes are a great example of what Jeff Bezos, Amazon’s CEO, calls the flywheel effect, where one business helps another.

Chapter 3: Amazon users unhappy about price and selection (17:10)

Not everything in the garden is lovely for Amazon. Strategy Analytics did a study of how people were talking about SVOD services in social media. It found that Netflix subscribers talked primarily about content-related issues. Amazon users, on the other hand, complained about prices and the lack of content in the service.


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