WEBVTT 00:00:00.000 --> 00:00:04.290 align:middle line:90% 00:00:04.290 --> 00:00:06.780 align:middle line:84% KRISTIN MYERS: Jeff Bezos has published his final letter 00:00:06.780 --> 00:00:08.730 align:middle line:90% to shareholders as CEO. 00:00:08.730 --> 00:00:12.610 align:middle line:84% We've got Yahoo Finance's tech editor Dan Howley here. 00:00:12.610 --> 00:00:15.150 align:middle line:84% So Dan, give us the details from the letter. 00:00:15.150 --> 00:00:17.543 align:middle line:90% What did Bezos have to say? 00:00:17.543 --> 00:00:19.310 align:middle line:84% DAN HOWLEY: Yeah, there are a few interesting tidbits 00:00:19.310 --> 00:00:20.420 align:middle line:90% out of this news-- 00:00:20.420 --> 00:00:22.250 align:middle line:90% sorry, shareholders' letter. 00:00:22.250 --> 00:00:25.820 align:middle line:84% Essentially, one of the top line items-- and Julia La Roche 00:00:25.820 --> 00:00:27.800 align:middle line:90% jumped on this way early-- 00:00:27.800 --> 00:00:30.260 align:middle line:84% was the fact that the company openly 00:00:30.260 --> 00:00:32.270 align:middle line:84% admits that they have to do better by their employees. 00:00:32.270 --> 00:00:37.160 align:middle line:84% That's something that has been an ongoing issue for Amazon. 00:00:37.160 --> 00:00:40.560 align:middle line:84% Bernie Sanders, obviously, has been on top of them for that. 00:00:40.560 --> 00:00:44.210 align:middle line:84% But they also do push back, saying that they do offer $15 00:00:44.210 --> 00:00:45.450 align:middle line:90% an hour for their employees. 00:00:45.450 --> 00:00:47.660 align:middle line:84% They also offer healthcare for their employees. 00:00:47.660 --> 00:00:50.270 align:middle line:84% But it was something that was worth mentioning 00:00:50.270 --> 00:00:51.800 align:middle line:90% in the shareholders' letter. 00:00:51.800 --> 00:00:54.500 align:middle line:84% One of the other things that I think really stands out 00:00:54.500 --> 00:00:57.050 align:middle line:84% is Amazon, which doesn't normally 00:00:57.050 --> 00:01:01.400 align:middle line:84% give the number of subscribers to Prime, is now doing that. 00:01:01.400 --> 00:01:06.410 align:middle line:84% They said they had 200 million subscribers to Amazon Prime 00:01:06.410 --> 00:01:07.640 align:middle line:90% right now. 00:01:07.640 --> 00:01:10.670 align:middle line:84% That, by the way, is a 50 million 00:01:10.670 --> 00:01:13.170 align:middle line:84% subscriber increase over last year. 00:01:13.170 --> 00:01:15.920 align:middle line:84% Now, just to give you an idea of how much of that 00:01:15.920 --> 00:01:19.970 align:middle line:84% was driven potentially by the coronavirus pandemic, 00:01:19.970 --> 00:01:24.000 align:middle line:84% prior to that, in 2018, they had 100 million. 00:01:24.000 --> 00:01:27.410 align:middle line:84% So to get to 150 million took them two years. 00:01:27.410 --> 00:01:30.140 align:middle line:84% To get to 200 million, though, took them one. 00:01:30.140 --> 00:01:31.790 align:middle line:84% So they managed to cut that time down. 00:01:31.790 --> 00:01:34.670 align:middle line:84% And then, in his shareholders' letter, 00:01:34.670 --> 00:01:38.240 align:middle line:84% Bezos basically was pushing the value that Prime provides 00:01:38.240 --> 00:01:41.660 align:middle line:84% to their customers, essentially saying that it helps to save 00:01:41.660 --> 00:01:45.680 align:middle line:84% customers a lot of money and a lot of time over the long term 00:01:45.680 --> 00:01:49.160 align:middle line:84% and essentially saying, look, if you say that the amount 00:01:49.160 --> 00:01:51.830 align:middle line:84% of Prime managed to save people $10 per hour, 00:01:51.830 --> 00:01:56.990 align:middle line:84% he says conservatively, that 75 hours multiplied by 10 an hour 00:01:56.990 --> 00:01:58.940 align:middle line:84% and subtracting the cost of Prime-- 00:01:58.940 --> 00:02:02.630 align:middle line:84% this is for people going to shop versus using Prime-- 00:02:02.630 --> 00:02:05.540 align:middle line:84% he says overall in 2020, that Prime 00:02:05.540 --> 00:02:09.710 align:middle line:84% managed to create $126 billion of value for its customers. 00:02:09.710 --> 00:02:12.753 align:middle line:84% Now, that's not necessarily real value 00:02:12.753 --> 00:02:14.720 align:middle line:84% that people are able to take home and put in their pockets. 00:02:14.720 --> 00:02:18.350 align:middle line:84% But it is essentially, what he's saying, saving people 00:02:18.350 --> 00:02:19.640 align:middle line:90% when they go to the store. 00:02:19.640 --> 00:02:22.160 align:middle line:84% So a lot that's interesting that Bezos hit 00:02:22.160 --> 00:02:24.800 align:middle line:90% on, obviously, touching on AWS. 00:02:24.800 --> 00:02:26.840 align:middle line:90% There was 30% implied revenue. 00:02:26.840 --> 00:02:31.280 align:middle line:84% He said basically that $64 billion versus-- 00:02:31.280 --> 00:02:33.230 align:middle line:84% would be normally what people spend, 00:02:33.230 --> 00:02:35.870 align:middle line:84% corporations spend versus $45 billion, 00:02:35.870 --> 00:02:37.180 align:middle line:90% what they spend on AWS. 00:02:37.180 --> 00:02:39.350 align:middle line:84% So that's $19 billion in value creation 00:02:39.350 --> 00:02:40.850 align:middle line:90% for their corporate customers. 00:02:40.850 --> 00:02:42.650 align:middle line:84% A real lot of interesting tidbits here. 00:02:42.650 --> 00:02:45.890 align:middle line:84% Obviously, Amazon, though, still, 00:02:45.890 --> 00:02:50.360 align:middle line:84% still under investigation for potential antitrust issues. 00:02:50.360 --> 00:02:52.970 align:middle line:84% And they are having an active investigation right now 00:02:52.970 --> 00:02:54.590 align:middle line:84% out of the EU, the European Commission 00:02:54.590 --> 00:02:57.263 align:middle line:84% looking into antitrust as well there. 00:02:57.263 --> 00:02:58.630 align:middle line:84% KRISTIN MYERS: All right, thanks so much, 00:02:58.630 --> 00:03:01.030 align:middle line:84% Yahoo Finance's tech editor, Dan Howley, 00:03:01.030 --> 00:03:02.200 align:middle line:90% with all of those details. 00:03:02.200 --> 00:03:06.110 align:middle line:84% 200 million subscribers is quite a lot, 00:03:06.110 --> 00:03:08.110 align:middle line:84% especially since Amazon Prime, as we were discussing, 00:03:08.110 --> 00:03:10.240 align:middle line:84% is not necessarily available everywhere. 00:03:10.240 --> 00:03:12.220 align:middle line:84% So it'd be interesting to see how that continues 00:03:12.220 --> 00:03:14.800 align:middle line:90% to grow going forward.