Amazon’s content spending rises sharply in 2023 to nearly $19 billion, up 14% from the previous year. The company’s expenses for video and music reached $18.9 billion, including costs related to Amazon Prime memberships and digital subscriptions.
CEO Andy Jassy confirmed that Prime Video has the potential to be a profitable business on its own. With the addition of ads in Prime Video, the company aims to continue investing in exclusive content. Analysts foresee the ads generating over $3 billion in additional revenue in 2024.
Amazon’s content budget also includes a hefty payment to the NFL for exclusive streaming rights to “Thursday Night Football.” The company reported ad revenue of $14.7 billion for the fourth quarter of 2023, surpassing Wall Street expectations.
Despite the substantial investment in content, Amazon recently laid off hundreds of employees across its studios, Prime Video, Twitch, and Audible. Nonetheless, the company’s commitment to expanding its content offerings remains evident as it continues to invest in exclusive and compelling content for its Prime members.
