Here's the real reason Amazon announced drones
The company is getting millions of dollars in free advertising on the biggest e-commerce shopping day of the year.
The thing is, Amazon Prime Air won't be available for many years. Even Bezos said Sunday night that the earliest Amazon Prime Air could be in service is 2015 because that's the soonest the FAA could update its laws.
But The Wall Street Journal reports that the FAA isn't planning on beginning the certification of commercial drones until 2020.
There is a good reason for this. Drones can be very dangerous. In March 2013, a commercial airliner flew within 200 feet of a small drone flying at 1,750 feet over a neighborhood in New York. The collision would have killed hundreds of people.
A retired commercial pilot named Tom Jeffries told ABC15.com the airliner almost hit the drone because drones don't appear on radar.
Jeffries says: “You’re never going to see them until they hit something. When they suck one of those drones into the engine of an airplane, then it’ll get everybody’s attention.”
The fact is, there is a very good chance that, last night, Amazon "announced" a service that will never exist in reality.
Why did Amazon do that?
The answer is free advertising. Even better: free advertising the night before the biggest e-commerce shopping day of the year, Cyber Monday.
How much was that free advertising worth? Well, "60 Minutes" gave more than 15 minutes to its Amazon story. A 30-second spot during the 7 p.m. show usually costs just over $100,000.
If you figure Amazon got 30 30-second commercials' worth of time, you can estimate that it got about $3 million worth of "earned" media.
But $3 million is probably a very low estimate. That's just the cost Amazon would have had to pay to reach "60 Minutes'" 13 million viewers. Thanks to all the coverage Amazon Prime Air has gotten in other outlets, many more millions of people are talking about the company Monday.
The funny thing is, talking about "drones" is a fairly common PR stunt at this point.
After the "60 Minutes" show last night, a Hacker News reader compiled a list of previously announced delivery drone programs, many of which were also PR stunts:
- Textbook drone delivery
- Cake drone delivery
- Pizza drone delivery
- Parcel delivery drones
- Beer delivery drones
- Taco delivery drones
- Sushi delivery drones
- General delivery drones
Let's see another reason drones will not delivery goods -- people will be shooting down drones in their back yards to get at the $10,000 diamond rings the drones will be carrying and probably sell the drone for a couple of thousand on the black market.
Gee Mommy did the stork bring my baby brother?
No dear the " amazon drone" did
They're not going to be delivering pizza.
Oooops, there goes one now....Watch out for that tree.....Ohhhh, nooooo, OMG....grab the box..
Having an aviation background I can't see the FAA ever allowing Amazon or any company to utilize drones to deliver items, this doesn't take in the liability issues should once crash or run into someone or something.
Granted the idea is unique and displays progressive thinking, but I don't see it being doable. Amazon should had hired someone with an ATC background to be on their development team to avoid costly mistakes that this will end up being.
"There is a good reason for this. Drones can be very dangerous."
Just ask all of the civilians Obama has killed with them.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.