Amazon profits fall as group looks to its own TV programmes

ONLINE retailer Amazon has reported a dip in profits as the cost of investing in new projects offset a further rise in quarterly sales.

The world’s largest online retailer, which sells Kindle devices and services, earned $82m in the first quarter of the year, down 37 per cent on a year earlier. Revenues were 22 per cent higher at $16.1bn.

The Seattle-based company has been investing much of its income in enhancing its distribution networks, while it soon plans to debut original TV programming on its website.

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It is running introductory pilots for 14 TV shows for anyone in the United States, UK and Germany to watch. Viewers will get to help decide which shows get additional episodes.

Founder and chief executive Jeff Bezos said: “The pilots are out in the open where everyone can have a say.

“I have my personal picks and so do members of the Amazon Studios team, but the exciting thing about our approach is that our opinions don’t matter.

“Our customers will determine what goes into full-season production.”

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Currency fluctuations have also weighed on Amazon’s results as a weak yen translates to fewer dollars on sales in Japan.

“The message is North America was better than expected but international was softer.

“The question is ... ‘Is this a reflection of macro trends in Europe, or is there something else going on there?’” said an analyst.

Amazon hit the headlines last year after it was accused of “immorally” minimising UK tax bills along with Starbucks and Google in a damning report by the Public Accounts Committee.

While Amazon’s UK website reported a turnover of £207m for 2011, its tax expense was just £1.8m, the report said.