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Amazon terminates Colorado based associates over new taxes
Mar 8th
Greetings readers!
Like any Monday morning, I woke up with a feeling of dread about the day and I didn’t even have to be awake 5 minutes to know why. When I checked my e-mail this morning, I found that I had received an e-mail from Amazon regarding my affiliate account. As of today, my Amazon affiliate account has been terminated as well as every other Amazon affiliate based in Colorado. Why have our accounts been terminated? The idiots in our state legislature just passed a law for taxing online sales. Our governor can’t ride a bike without nearly getting himself killed, how in the world did we think he was smart enough to run the state?! Anyway, below is the full statement I received from Amazon in my e-mail this morning.
Dear Colorado-based Amazon Associate:
We are writing from the Amazon Associates Program to inform you that the Colorado government recently enacted a law to impose sales tax regulations on online retailers. The regulations are burdensome and no other state has similar rules. The new regulations do not require online retailers to collect sales tax. Instead, they are clearly intended to increase the compliance burden to a point where online retailers will be induced to “voluntarily” collect Colorado sales tax — a course we won’t take.
We and many others strongly opposed this legislation, known as HB 10-1193, but it was enacted anyway. Regrettably, as a result of the new law, we have decided to stop advertising through Associates based in Colorado. We plan to continue to sell to Colorado residents, however, and will advertise through other channels, including through Associates based in other states.
There is a right way for Colorado to pursue its revenue goals, but this new law is a wrong way. As we repeatedly communicated to Colorado legislators, including those who sponsored and supported the new law, we are not opposed to collecting sales tax within a constitutionally-permissible system applied even-handedly. The US Supreme Court has defined what would be constitutional, and if Colorado would repeal the current law or follow the constitutional approach to collection, we would welcome the opportunity to reinstate Colorado-based Associates.
You may express your views of Colorado’s new law to members of the General Assembly and to Governor Ritter, who signed the bill.
Your Associates account has been closed as of March 8, 2010, and we will no longer pay advertising fees for customers you refer to Amazon.com after that date. Please be assured that all qualifying advertising fees earned prior to March 8, 2010, will be processed and paid in accordance with our regular payment schedule. Based on your account closure date of March 8, any final payments will be paid by May 31, 2010.
We have enjoyed working with you and other Colorado-based participants in the Amazon Associates Program, and wish you all the best in your future.
Best Regards,The Amazon Associates Team
If you live in Colorado, please contact the elected morons that pushed this through and tell them to repeal it!
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Global Geek News Podcast #55
Feb 9th
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Host: Jeremy Bray & Wesley Faulkner
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Here are the shownotes for episode #40 for the Global Geek News Podcast.
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Global Geek News Podcast #38
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Here are the shownotes for episode #35 for the Global Geek News Podcast.
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Amazon's VOD success depends on distribution deals
Aug 6th
Greetings Readers!
The streaming video market has become rather crowded in the last couple of years with services like Hulu and YouTube, but the video service with the most potential is Amazon‘s VOD service.
Amazon’s VOD (Video On Demand) service has been around for a while and has a huge library of tv shows and movies including some of the newest releases yet it has never gained much traction in a world dominated by Netflix. If Amazon hopes to really compete in this market, it needs to do more than advertise its service (which it doesn’t do a very good job at anyway). Amazon needs to through its weight behind the service and make sure that everybody is aware of it and it is accessible as possible. How can they make it accessible? Amazon needs more distribution deals with hardware manufactures.
Amazon currently has deals which allow its service to be accessed on Roku boxes, Panasonic Blu-ray players, TiVo DVRs and Sony Bravia TVs, but they have to do much better than that. Amazon needs to push for a deal with every TV manufacture instead of just Sony and their Bravia line. With many people upgrading to new and better TVs after the DTV transition to take advantage of the new HD content, there is a huge opportunity for Amazon if they work to put themselves on all internet connected TVs. Same thing with Blu-ray players, Blu-ray is starting to gain traction and Amazon needs to do its best to get on more than just Panasonic players if it wants to get in on the ground floor before the mass exodus from DVD to Blu-ray begins. As far as TiVo goes, that is a great move for them but they should also work towards being on the DVRs offered by cable and satellite providers.
Amazon has the huge opportunity to grab a huge chunk of the streaming video market if they are willing to do what is necessary to put their service in front of as many people as possible. They have started moving in this direction, but so as Netflix and others, so if they want to put themselves in a dominant position, they must act now!
Finally, I think they need to go mobile with their video on demand service. Apps for the iPhone, Android, Windows Mobile and such should be coming too. Many people like to watch videos on their phones, so if you have a way to stream videos to a phone, even if it is over wifi, you are ahead of the competition.
The competition in this space is in its very early stages and Amazon is on the position of either being left behind or taking the lead. The potential for profit is there, will they strike before its too late?
