Amazon's Digital Dilemma

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The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and Chief Technology Officer Jeremy Phillips discuss topics across the investing world.

In today's edition, Eric and Jeremy look at why its in Amazon's best interest to keep building out its streaming service. Amazon has bet the house on a digital strategy, but the future of digital is highly uncertain. Consider that digital music grew just 8% last year while streaming music subscriptions grew 65%. Likewise, the future of other digital mediums like video are already showing signs of spending moving toward streaming services. Through its vast data centers and distribution -- via devices like the Kindle Fire -- Amazon along with Apple could consolidate distribution of next generation media. However, Amazon must continue investing in its streaming service if it wants to "future proof" itself against the changing whims of new media.

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At the time this article was published Eric Bleeker has no positions in the stocks mentioned above. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Amazon.com, and Wal-Mart Stores.Motley Fool newsletter services recommendApple, Amazon.com, Netflix, and Wal-Mart Stores. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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