Amazon wants you to know it’s just as serious about movies as it is about two-day shipping.
In 2020, the company spent $11B on original and licensed video and music content. In 2021, that was up to $13B. Last year, spend increased again to $16.6B.
On Amazon’s Q4 earnings call, CFO Brian Olsavsky said these investments are driving new Prime memberships, and CEO Andy Jassy emphasized that the price for some standalone streamers “is more than what Prime [costs a consumer] today.”
Food for thought
As Amazon invests more in media, bringing a consumer media app under its wing could pour lighter fluid onto an already hot TV-to-toilet-paper flywheel. Take Snapchat, for instance:
- It reaches 75% of 13- to 34-year-olds — AKA trendy impulse buyers — in countries representing 50%+ of digital ad spend.
- Snapchat’s current CFO was VP of finance for Amazon’s global Digital Video business.
- Snapchat’s AR features have powered millions of interactive content and shopping experiences for brands like Disney and Walmart.
Sounds pretty Amazonian to us. Oh wait, it is.
Get the 5-minute roundup you’ll actually read in your inbox
Business and tech news in 5 minutes or less