Strategic Shifts - Wednesday, February 6, 2008 11:19 - Comments

Amazon unbundles DVD rentals

AMZN sells its DVD rental businesses (UK and Germany), invest in the buyer and will promote the service. Smart move. AMZN simultaneously:

• unbundles a very specific business line it couldn’t manage optimally
• become the main shareholder in the market leader
• and position itself as the main (due to its investment) orchestrator in a —admittedly very limited— process network

Expect more of these unbundling / re-bundling moves as AMZN continues to innovate in new markets and optimize in its existing ones.

Source: Techcrunch - February 4th 2008