What Did Amazon Do This Week? - 04-06-2023 [+35 LINKS]
BRIIIIIIING BRIIIIIING, IT’S AMAZON CALLING
In a bid to make Prime even stickier during an unusual Shareholder voting week, Amazon looks to be cosying up to carriers across the US, including Verizon, T-Mobile and Dish, to offer low-cost or possibly free nationwide (US-only right now) mobile phone service.
The $10 (or free) pricing news sent shockwaves into the souls of carriers (Verizon saw a 12-year low, Dish soared) and bolstered Amazon's stock price. How this was ever kept a secret for six to eight weeks will remain a mystery. Carriers need new revenue streams, and this move could be one. The data this could get Amazon is also not insignificant. How this fits in with the satellite-internet service called Project Kuiper remains to be seen, but the failed Fire phone will be ringing in the ears of more than a few people out there.
WDADTW friends, Consumer Intelligence Research Partners (CIRP), follow Prime perks and consumer behaviour and say Prime membership has plateaued. A move like this, especially during turbulent economic times, could be a real draw for many new accounts. Expect more in the coming weeks and months rather than years now this leaked.
SO WHAT?
The move is as much the famed Bezos quote ("your margin is my opportunity") as it is another shot at Target and Walmart's subscription programs. Such a move further distinguishes Prime from other options like Walmart+ etc. Amazon could help millions save more money by effectively doing nothing and being a mobile virtual network operator. MVNOs are most often unsuccessful, although there are some exceptions like TracFone. The cellular market is huge; 2022 saw +$300 billion in wireless revenues in the US alone. For context, that's about half what the health and food markets in the US are worth. Jassy is not looking for chump change; he's looking for the next AWS. The US is one animal; doing this elsewhere will be much more challenging for Amazon.
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