Cost of sales was $16.14 billion, or 75.9% of revenue, compared with 79.3%. Fulfillment, marketing, technology and content in G&A combined was $4.45 billion, or 20.9% of sales, up approximately 293 basis points year-over-year. Fulfillment was $2.2 billion, or 10.3% of revenue compared with 9.3%. Tech and content was $1.22 billion, or 5.7% of revenue, compared with 4.5%. Marketing was $833 million, or 3.9% of revenue compared with 3.3%.We can argue all day about Amazon's strategy - you know I'm ultra-bullish on it -- but it's tough to make the case that Amazon could not, pretty much at will, stop Netflix in its tracks. Jeff Bezos has started a mini-bidding war on content. If he decides to kick things into high gear (you know, take a billion or so from fulfillment and put it towards content), it's lights out for Netflix. If another player in the space -- one with firepower -- gets serious about buying content, Netflix will likely struggle to stay in business. Two key thoughts: One, I know what you're thinking. Will Amazon buy Netflix? Based on everything I have said in this article, I'm not sure why it would. All Amazon would be doing is taking on billions in debt -- just a trashed balance sheet -- when all it needs to do is outbid Netflix for content that, for the most part, isn't exclusively licensed anyway.
Amazon vs. Netflix: Jeff Bezos Could Squash Reed Hastings Like a Bug
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