John Malone Describes Amazon As "Death Star" Moving "In Striking Range Of Every Industry On The Planet"

Tyler Durden's picture

Famed cable and media investor John Malone, a man who repeatedly manages to cobble together some of the most complicated, and profitable, financial transactions in the world, appeared on CNBC this morning with a message for anyone in the "B2C business"...Amazon is going to use their scale to destroy you.  Speaking with CNBC's David Faber, Malone hilariously described Amazon as a "Death Star moving into striking range of every industry on the planet."

The internet "makes scale even more important in the media business, where scale always was important. It's all about scale," he said. Netflix was "the first wave. And I think Jeff [Bezos] is gonna be the most disruptive. As [his] Death Star moves into striking range of every industry on the planet."

 

He explained that Amazon's business dominance is growing stronger. Malone said any company that sells products to consumers is at risk of being crushed by the e-commerce giant.

 

"If you're in the B2C business, if you're selling anything to any consumer anywhere on the planet, you gotta believe that Amazon is gonna have a look at that opportunity to commoditize you to use scale to serve the public," he said. Bezos is "reducing cost to the consumer and providing great convenience ... You just got to take your hat off and envy what he has built."

Bezos

Ironically, just yesterday we noted that Amazon's "Death Star" had moved the grocery industry directly into its sights and is preparing to fire (see: Amazon Says It's "Almost Ready" To Get 1,000s Of Grocery Store Cashiers Fired)...

Late last year we noted Amazon's efforts to 'disrupt' the traditional grocery retail model by introducing small format stores that allow customers to simply walk in, pick up what they want and walk out.  The concept store, dubbed AmazonGo, tracks a customer's every move, including each item they remove from store shelves, allowing them to skip long, often frustrating, check out lines (see: Amazon Goes Offline With Bricks-And-Mortar Grocery Chain; Envisions Opening 2,000 Stores).

 

Now, after nearly a full year of testing their Seattle concept store with employees, Amazon says their cashier-less grocery store is just about ready to go live.  As Bloomberg notes this morning, the company has already begun hiring construction managers and marketing staff to build out a store base.

 

The e-commerce giant unveiled Amazon Go last December, saying it planned to open the store to the public early this year. However, the company encountered technical difficulties and postponed the launch to work out the bugs, The Wall Street Journal reported in March.

 

Seven months later, challenges remain, but the “just walk out” technology has improved markedly, says the person, who requested anonymity to speak freely about the project. And in a sign that the concept is almost ready for prime time, hiring for the Amazon Go team has shifted from the engineers and research scientists needed to perfect the platform to the construction managers and marketers who would build and promote the stores to consumers.

With that, here is the full interview with Malone:

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Son of Captain Nemo's picture

Jeff Bezos.

Proof that a printing press can do "amazing things"!...

READ "BETWEEN" THAT LINE for the hidden meaning!!!

J S Bach's picture

All Amazon is is this...

The convenience of delivering any good to a home or company without the inconvenience of having to drive to another distination to acquire same goods.

This is an actual step in the devolution of human beings from creatures that had to actually reach out physically to obtain the object of their desires... to a bovine-like animanl that has everything brought to it without thinking.

What, ye thinking man... do you think is the final outcome and result of this state of affairs?

Son of Captain Nemo's picture

I'm not even referring to the business model which isn't even worth 1/1,000,000,000 of it's actual value.

His model is this (https://en.wikipedia.org/wiki/Value_America) which got completely obliterated because???... WHY???...

Stuck on Zero's picture

There is just one reason a thousand other companies can't emulate Amazon strategies ... dumbass management. I've worked closely with Amazon and many other companies and the stupidity I've seen in management at most companies is unflipping unbelievable. Most companies just cannot innovate, adapt, react, or change business strategies in any way. My conclusion is that we pay management way too much money in the USA and because of that the CEOs take no risks and do nothing other than to strategize how to get a quick pop and an exit. That usually means killing off R&D, any CapEx, and any innovation. That increases returns for a short while but dooms the company like dinosaurs before the onslaught of agile little mammals.

Son of Captain Nemo's picture

You're preaching to the choir S o Z

My cupboard is filled with the UUNET(s)... WorldCum(s)... PSINet(s)... only to watch all of them go bankrupt and reabsorbed into the old Baby "Bells" and AT&T (which if you are old enough and will recall the Federal Government split up in the 80's because they were a "monopoly") after 9/11... who are doing as poor a job if not worse than the ones that owned it 18 years ago!...

Once you are permitted by the powers that be to be the BIGGEST the business model "IS" and will ALWAYS BE THE BEST IN "TOWN"!!!

Gold Pedant's picture

I have a beach towel from a division of GE that was "spun off," e.g. destroyed with massive layoffs in the '90s. I'm still trying to figure out when going long on any corporation was a good idea based on actual growth.

 

And on a cheerier note, here's an old YTMND PowerPoint presentation of how to attack the Death Star. Probably won't work on mobile.

http://lay-uh.ytmnd.com/

Son of Captain Nemo's picture

My ass is still sore G P from the dot.com fiasco!

DownWithYogaPants's picture

I get much better deals on ebay for my gizmos.

And if you're eating many dry goods then you ain't gonna like the results

Code Duello's picture

As a vendor you might do well with ebay.

Speaking as a consumer, I was defrauded by an approved ebay vendor.  I did not know that I had been defrauded until the original manufacturer so informed me when I returned a warrantied product.  My consequent dealings with ebay left me without the vendor being reprimanded, censored or banned.  ebay informed me, essentially, that it was "my tough luck."

So now, if you want to sell me something on ebay, the chances are substantially likely that you will not make the sale.  I now hesitate to make any purchase on ebay.  In fact, while shopping and makintg purchases since my negative ebay experience I have not once browsed the same product on ebay.  I'd rather pay a higher price from a truly verified vendor - directly or via an intermediate such as Amazon - than risk another loss such as I suffered on ebay.

 

HRH of Aquitaine 2.0's picture

I only use EBay to buy and sell used items.

There is a time to be cheap and if you want OEM support it is best to avoid EBay.

A Sentinel's picture

Wow did you nail it! Lazy idiots- except the really good ones, Amazon has excellent analytics (most companies don’t even do costing right).

I don’t hate Bezos yet (nowhere near how deeply I loathe the Facebook kid or the other totalitarian wannabe assholes.)

He’s very quiet, too. That’s smart. I don’t think that it’s due to his being a classy guy.

gatorengineer's picture

Folks reading here are missing one thing.  Amazon isnt the cheapest anymore.  If you are buying chinese crap, and you dont need it tomorrow.  Then buy it from Fleabay, it will be the same crap and cheaper... just have to wait a few more days.

OhNo's picture

Theres a reason for that, its callaed the opposite every thing you are told and believe in.

J S Bach's picture

Sorry... my computer is malfuntioning lately.  The misspellings of my comments are embarrassing.

Son of Captain Nemo's picture

Isn't it fun J S to take the occasional strolls down the huge "graveyard" over the past 25 years that ARE ALL GONE... that paved the way for "cocksucker(s)" like Bezos, Elon, Larry Ellison and Marissa Mayer that didn't contribute a god damn thing other than the fact they probably swallowed the loads of people like George Soros, Ben Bernanke and Henry Paulson and after "polishing" it to high sheen kept asking for "more"?!!!

peddling-fiction's picture

"Sorry... my computer is malfuntioning lately.  The misspellings of my comments are embarrassing."

Are you sure you misspelled or was it "tweaked" by quantum attack spoofing, a subset of the NSA tools used against "dissidents" like me, and maybe you.

https://en.m.wikipedia.org/wiki/Tailored_Access_Operations#QUANTUM_attac...

The Beast cloud system dislikes people that point out the mistake of indulging in libertine concupiscence.

BingoBoggins's picture

 

... that explains a lot ....

 

tion's picture

It would be so ironic if when the Chinese gov realizes their lil fisherman boy they fattened grew up and knifed them in the back, they consequently decide to build the means to free us from TAO.

HRH of Aquitaine 2.0's picture

Same here. It almost looks like my comments are being autocorrected to make me look stupid.

HedgeJunkie's picture

I'm not comfortable with the thought that you are charged for each item you pick up.

I often change my mind and put it on any handy shelf.

booboo's picture

Sounds like a Hotel room mini bar, you pick it up and look at it you may as well drink it, it's showing up on the bill.

DCFusor's picture

So, forcing extra work on the store, which passes the cost of that through to the rest of us who are responsible.  Fuck you.

bub's picture

You're charged for each item scanned by the RFID scanners at the EXIT.

Miffed Microbiologist's picture

I will admit it. I use amazon a lot. The last shopping I did at Walmart was to buy a quart Pyrex measuring bowl chipped beyond usability. After enduring the foray through the bizarre bloated shoppers, I made it to the kitchen appliances only to find they didn't carry Pyrex but some cheap imitation. I brought it home to find it didn't even pour properly and was completely useless. So I ordered exactly what I wanted on amazon. Never will I step foot in Walmart again.

Being a full time tax donkey/wage slave I have limited time and I despise shopping. Same with going to a movie which was once a wonderful experience is now a torture listening to everyone talk and their phones pinging. I guess I just find interactions in society just too nauseating now.

The only things I will never purchase from amazon is clothing and food. I have managed to steer away from corporate in those areas.

Miffed

HRH of Aquitaine 2.0's picture

I only recently stepped foot into a local Walmart. It wasn't pretty. I have left several times with nothing.

Cheaper prices at a local Kroger. Fresher product.

The thing about Walmart is the employees and the shoppers. It was shocking. The employees act like they don't give a fuck and have no shame. They remind me of VA employees. They are rude and don't even try to be nice.

I went to another Walmart in the area about 10 years ago to look at electronics. I left. No customer service and there was constant squalling and sirens. If you touched one thing to take a closer look it set off an alarm. The siren noise was beyond annoying.

I tried to set up a Net10 wifi hotspot yesterday. Don't waste your money. The Asian customer service rep was a complete asshole and acted like I had never used an electronic device in my life!

As I was trained in the Signal Corps and built a custom gaming PC that I have updated on numerous occasions (If anyone has a review on the Intel 9, I would love to hear your review!) including installing my own RAM, GPU, and cleaning my CPU and fan, I was appalled. I understand customer service in the US has to be one of the nine circles of hell. I couldn't do it. I was nice, I was polite. Dude was an asshole.

Off shoring customer service has turned into a nightmare. Can you imagine having to explain to Shaniqua Jenkin how to set up a WiFi? I get the anger. But anger towards me? Hard to take. I have a perfect WASP accent.

bub's picture

The wisdom to avoid risks while hunting and gathering is beneficial evolution.  

 

Knowing to avoid mobs and thieves is evolution. 

The presence of the mobs and thieves is the de-evolution.

Got The Wrong No's picture

Cilly me for thinking Monopolies were illegal. 

bub's picture

Not one swinging dick on this site who wouldn't trade places with him in a second.

slightlyskeptical's picture

Bezos will end up destroying capitalism and forcing the whole world to become socialists together. 

Between now and the ultimate end is going to be tough sailing. 

Son of Captain Nemo's picture

Only if you don't cut his head off and put it on the end of "stick" along with all the players in Washington D.C. that made him "possible"!

Grave's picture

amazons business is a dead end.
"replicators" are going to fuck it up real good :)
(3d printers is just a start)

CAPT DRAKE's picture

The people will only tolerate so much of this.  There will be consequences.

 

WTFUD's picture

The people will tolerate what they're given . . . sheep fucking dips.

Bigly's picture

This is actually true:

"You'll get nothing and LIKE it"

Son of Captain Nemo's picture

"The people will only tolerate so much of this. There will be consequences."

We're already up to $24 trillion in debt with 4 times that in unfunded liability chasing that "tail" on 6 countries in the last 16 years that have been obliterated for their resources that are not being controlled by the Western multinational(s) and a government in Washington chafing at the bit to launch WWIII TO MAKE IT "RIGHT"?!!!... And then there is Jeff Bezos and his Corporate Empire that was made possible through ALL OF IT!...

Say "WHEN"!!!

Archibald Buttle's picture

The people will tolerate so much more of this.  There will be no consequences.

FIFY, sadly.

Goldennutz's picture

It's not just books anymore. ...

It's the WORLD.   

We own it and there ain't a damn thing you're going to do about it.  

mctimm's picture

Unlike Elon Musk, this guy delivers!

soyungato's picture

Congress is giving all Pentagon purchases to the Bozo. About $53 billions worth. Everyone want to do busines with the Pentagon pays a tax, so to speak, to Amazon the middleman.  How fucked up this country has become. 

soyungato's picture

according to the Intercept report

Under pressure from anti-monopolists, House and Senate negotiators tweaked the controversial “Amazon amendment” this week, but waved it through nonetheless. The provision seeks to turn over federal procurement of commercial off-the-shelf items, a $53 billion market, to e-commerce portals. And with Amazon as the runaway leader in that space, critics say that even with the modifications, the provision still favors the online retail giant, giving it a pathway to billions of dollars in new revenue…

Amazon charges third-party sellers for the privilege of using its platform, anywhere between 15 and 20 percent of gross sales. If Pentagon procurement, and potentially all federal procurement, shifts predominantly to Amazon, it would collect billions of dollars annually without doing much of anything.

soyungato's picture

Caitlin Johnstone wrote an article about the Bozo

Bezos continues to get cozier and cozier with the US power establishment as his empire metastasizes across human civilization. He kicked WikiLeaks off Amazon servers in 2010, he scored a 600 million dollar contract with the CIA in 2013, he joined a Pentagon advisory board in 2016, he hung out with Defense Secretary James Mattis in August, and he’s spent nearly ten million dollars this year lobbying the federal government, which is likely what led to an NDAA amendment gifting Amazon a $54 billion market it’s expected to dominate as a supplier to the Pentagon.

FoggyWorld's picture

And he has the clout of the Washington Post to go after federal officials who dare to try to slow him down.

pitz's picture

If Amazon wants to run a loss supplying the Federal Government, why should anyone disagree?  Because they really don't make money on anything else.  

Archibald Buttle's picture

so basically bezos will buy 50 cent hammers from china, charge the pentagon the full $900 they are accustomed to paying, and pocket the difference?!!!

Oil_trash's picture

I wonder if Amazon is basically history repeating itself. They have brought back mail order/catalog shopping. Seems like kids look online and wish the same way I did when I was a kid with catalogs. Till the next best thing comes along

Cthonic's picture

Kids?  How about wives with Amazon branded credit cards?  They don't just wish; and they don't wait for the next best thing.