Amazon has been one of the most aggressive spenders in the video content business over the past few years.
And according to Macquarie Research’s Ben Schachter, the e-commerce giant could be spending “well-over” $3 billion a year on video streaming content.
“Amazon’s exclusive and original video strategy is still evolving…we believe it is currently investing well over $3 billion annually for original and licensed content,” Schachter wrote in a note published Monday.
The last time Amazon disclosed its investment amount on video content was back in 2014, when it said it spent $1.3 billion. This year, it said it’s doubling its spending on video content in the second half of the year, compared with last year, but didn’t disclose the exact dollar amount.
The investments have led to a number of breakthrough original shows, including “Transparent” and “Mozart in the Jungle,” which collected the Emmy’s and Golden Globe Awards last year. Just last week, Amazon hit another major milestone when “Manchester by the Sea” was named the best film of the year by the National Board of Review — the first big film award for Amazon (to be clear, Amazon didn’t produce the film, but bought its domestic distribution rights.)
Schachter writes “Manchester by the Sea” could even land Amazon Studios’ first nomination for an Academy Award Best Picture this year. And if that happens, expect Amazon to heavily promote the film as exclusive content on Prime Video, in order to attract more users to its Prime membership program (which includes free two-day shipping, and access to a bunch of free video and music content):
“The bottom line is that Amazon is almost certainly going to highlight the critical reception of ‘Manchester by the Sea’ as a way to focus attention on its video efforts and the associated benefits to Prime members. Prime Video has quickly evolved into a meaningful part of the Amazon ecosystem and management believes is, in part, responsible for the rapid expansion of Prime members.”
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.
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