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Amazon looks to the sky in quest for complete control of content

Published Aug 23rd, 2013 2:00PM EDT
Amazon Wireless Service

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A report Thursday night from Bloomberg stated that Amazon has been testing Globalstar’s wireless satellite network in order to determine if it could build a wireless service of its own. This could be a pivotal moment for the company. Amazon’s video viewing audience has been growing at an amazing pace: it hit 38 million unique views in July, while the amount of time consumers spend watching Amazon videos has doubled in just six months. Amazon’s Kindle and Kindle Fire ranges have turned out to be substantial successes — they have basically killed off Barnes & Noble’s eBook and tablet product lines and are on their way to becoming the absolute eBook hegemon in North America with at least three new devices en route, according to exclusive BGR reports.

A wireless network of its own would give Amazon unprecedented control over content distribution. The company could soon be running its own wireless service beaming content to its own Kindle devices — some of it original Amazon productions, most of it videos and eBooks from a variety of sources. There is little doubt that Amazon’s ultimate goal is to kill off most book publishers and eventually publish a wide range of books by authors directly under contract with Amazon.

The ambition here is dazzling. Not since the heyday of RCA in the Roaring Twenties has one corporation has such soaring ambition in every step of the content creation and delivery chain.

After launching mobile game company SpringToys tragically early in 2000, Tero Kuittinen spent eight years doing equity research at firms including Alliance Capital and Opstock. He is currently an analyst and VP of North American sales at mobile diagnostics and expense management Alekstra, and has contributed to TheStreet.com, Forbes and Business 2.0 Magazine in addition to BGR.