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Comment by tguedes | Hacker News Reader

From https://stratechery.com/2021/distribution-and-demand/:

`I do get the argument that Prime Video is a waste of money for Amazon; Brad Stone notes in his new book Amazon Unbound that “there was little evidence of a connection between viewing and purchasing behavior” and that “any correlation was also obfuscated by the fact that Prime was growing rapidly on its own.”`

Is that nugget actually true or is Bezos just obsessed with the glamor of Hollywood?

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>> “When we win a Golden Globe, it helps us sell more shoes,”

> Is that nugget actually true or is Bezos just obsessed with the glamor of Hollywood?

Could it be more an idea of goodwill[0] ("the intangible value attributable solely to the efforts of or reputation of an owner of the business")? What I mean to say is, having Golden Globes or running a valued streaming service, even if it's not directly correlated with increased retail sales, makes customers generally regard Amazon more highly, more chic?

For all of its faults (and I am very critical of the company), I don't know anyone who derides the company in the same manner that Walmart is derided[1], for example.

[0] https://en.wikipedia.org/wiki/Goodwill_(accounting)

[1] http://www.peopleofwalmart.com/

I find it hard to believe as well, although of course if you subscribe to prime for movies and TV you're probably more likely to use it for free deliveries as well.

But if the plan is to make Prime more popular there seem to be many, many simpler and probably cheaper ways to do that. It's as if McDonalds started a movie studio in order to sell Movie + Big Mac bundles.

Not quite McDonald’s, but KFC released:

- a limited edition gaming console in partnership with Cooler Master (with integrated chicken heater): https://en.m.wikipedia.org/wiki/KFConsole

- a Lifetime mini-movie starring Christian Slater as Colonel Sanders in “A Recipe for Seduction”: https://variety.com/2020/tv/news/kfc-colonel-sanders-mario-l...

- a dating sim video game, “I Love You Colonel Sanders”: https://store.steampowered.com/app/1121910/I_Love_You_Colone...

- a 96 page romance novel, “Tender Wings of Desire”: https://time.com/4770024/kfc-romance-novel-mothers-day/

Ok I rescind my previous comment then. This is amazing.

A.C. Slater, not Christian Slater.

Dang, I’m past the edit window. Thanks for the correction.

In France McDonalds partnered with a book publisher to create a whole new collection to bundle books with Happy Meals.

Small steps yet, but they could be getting there.

For years McDonalds and other fast foods in America bundled toys with Happy Meals. Building cheap little toys is way less expensive than big budget media.

Happymeal toys probably cost McDonalds nothing. I'm sure Nintendo was covering the cost of those Pokemon. It's advertisement.

yeah i highly doubt it’s true. but maybe over time if prime video gets compelling enough that people buy prime just for access to it, then it could be true. right now it’s just seen as a bonus if you already have prime for other reasons. maybe bezos just believes it anyway

I’m skeptical of the argument that Prime Video attracts Prime subscriptions. The true motivation could be Hollywood glamor, or having the data to link viewing behavior to product recommendations.

It does, for me. Prime Video is just the nudge I need to justify the cost.

If not for Prime Video I'd probably not be a member, and without that fast free shipping, would probably buy more from elsewhere.

All of that said, I generally don't like Prime Video so don't think it's worth much as a standalone.

Is that nugget actually true or is Bezos just obsessed with the glamor of Hollywood?

I'd trust the words of someone who actually has access to Amazon's financials over the word of a blogger on the outside.

1. It's Brad Stone, probably the person who has the most connections to people inside Amazon than anyone else, not just a random blogger.

2. You would blindly trust the words of someone who has to justify spending billions of dollars to shareholders?

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