An annual report posted by Amazon has revealed its spending on media content material has elevated to nearly $19 billion.
As one of many Big Five US tech giants, it owns a number of main platforms, together with Amazon Prime, Amazon Music, Twitch, and Audible.
As reported by Variety, Amazon ran up a invoice of $18.9b for TV exhibits, films, and music to be utilized on its providers in 2o23, reflecting a 14% improve on the $16.6b determine amassed the earlier 12 months. The data got here to gentle after the corporate filed its 10-Okay annual report on the US Securities and Exchange Commission.
The figures are inclusive of licensing and manufacturing prices referring to content material choices throughout Amazon Prime and different digital subscriptions, leases, and gross sales.
In distinction, Netflix spent an estimated $13 billion buying and producing content material in 2023, with plans to extend that quantity to $17 billion in 2024.
Primed for fulfillment
On the again of the spending improve, Amazon held its 2023 This autumn Earnings Call on Thursday with a continued perception within the growth of Amazon Prime as a worthwhile asset in ready.
CEO Andy Jassy acknowledged, “We have increasing conviction that Prime Video can be a large and profitable business on its own, and we’ll continue to invest in compelling exclusive content for Prime members like Thursday Night Football, Lord of the Rings, Reacher, Mr. & Mr. Smith, Citadel, and more,”
He continued on the introduction of adverts by default on Prime Video (29 January) until subscribers choose to pay an additional month-to-month payment for an ad-free service ($2.99/US) on how “we’ll be able to continue investing meaningfully in content over time.”
The initiative is anticipated to lift an additional $3 billion in incremental income over 2024.
Amazon’s content material spending features a vital rights take care of the NFL, with the unique package deal to stream Thursday Night Football, mentioned to be value round $1 billion per 12 months to the league over the 11-year contract. This may be seen as speculating to build up with Jassy heralding Prime Video’s second season of TNF as “a rousing success by all accounts,” underpinning a year-on-year improve of viewers by 24%.
The sense of accomplishment gained’t be shared by many within the firm’s workforce after Amazon laid off tons of of workers final month throughout its steady of subsidiaries, together with the axing of 35% of Twitch’s headcount.
Amazon’s biggest-ever company reduce got here in 2022 when a whopping 27,000 positions have been misplaced.
Image: Erik McLean/Pexels.
