The ‘big four’ of the internet’s largest online retailers are in the throes of a “death spiral”, according to the chief executive of the big three, Jeff Bezos.
“I think that the ‘Big Four’ have just gone into a death spiral,” Bezos told a gathering of venture capitalists at the Guggenheim in Los Angeles on Monday.
“And we have to get them out of this death spiral.”
The ‘big’ four are Amazon, Apple, Netflix, and Google, all of which have a combined market cap of $70bn.
They are all valued at $25bn by Forbes, a respected industry publication.
A series of reports in the past year by the Wall Street Journal, The Washington Post and Business Insider all pointed to a growing number of Amazon’s customers choosing not to pay for its video and music services.
The firm has made big investments in video streaming services like Hulu, Amazon Prime Video and Prime Music, which it has said will deliver a better experience for customers.
But Bezos’ comments come at a critical time for the firm.
Its stock has dropped more than 30% in the last three months, and analysts believe it will soon be on the verge of a massive collapse.
The ‘Big’ Four Amazon, Amazon, Disney, and Netflix have been among the most profitable companies in the world since the early 1990s.
They now stand at $66.5bn each, with Amazon accounting for more than 80% of that figure.
The company has been able to capture some of the attention of investors in recent years with its acquisitions of Netflix, Apple and Google.
But the company has faced pressure to invest more in its content business, with Netflix’s original series, The Crown, in particular causing problems for the company.
Apple has been struggling to stay relevant in the smartphone market, while Amazon has been heavily criticised by analysts for failing to take advantage of the explosion in cloud computing.