KOLKATA: Video has emerged to be a key play for the tech giants, especially over the past year. After Google’s YouTube knocked over the industry with astounding ad revenue and viewership in the last quarter, and now, Amazon has also revealed how its streaming service Prime Video has fared in recent times.
In what may sound warning bells for market leader Netflix and upstart Disney+, Prime Video's viewer base has surpassed 175 million. In a letter to shareholders, Amazon boss Jeff Bezos shared he's proud to have Prime Video in the family.
“As Prime Video turns 10, over 175 million Prime members have streamed shows and movies in the past year, and streaming hours are up more than 70 per cent year over year. Amazon Studios received a record 12 Academy Award nominations and two wins. Upcoming originals include Tom Clancy’s Without Remorse, The Tomorrow War, The Underground Railroad, and much more,” wrote Bezos.
In mid-April, Bezos revealed that the e-commerce behemoth’s Prime service now has over 200 million subscribers, up 50 million from the beginning of 2020. The service includes fast free shipping, music, video, reading, gaming which is priced at Rs 129 per month, and Rs 999 per year in India.
The numbers are not only talking. Prime Video is making its way into critics’ mind too as it has shined in recent award ceremonies. It earned 12 Academy Award nominations across four films this year; moreover, Sound of Metal won an Oscar in the newly-created sound category.
Interestingly, the OTT is not limiting its video aspirations to original titles and movies but has thrown its hat into the competitive sports content too. “The live sports offering for Prime Video continues to grow internationally,” Bezos said in the letter. Very recently, it became the first streaming service to secure an exclusive national broadcast package from the prestigious NFL. It has ventured into cricket too, the most popular game in India, by acquiring the India territory rights for New Zealand cricket through 2025-2026. It may look at other popular cricket rights in India in the coming year to bolster its sports library.
The company looks at video as a component of broader prime membership. Prime members who watch video have higher free trial conversion rates, higher renewal rates, higher overall engagement, an Amazon spokesperson said in the earnings call.
"There’s great examples of places like Brazil where you launch a video only subscription for example that preceded the broader Prime membership with shipping components and that was as an example a great way to expose people to Amazon. And as we launched a broader Prime in Brazil, it was a great mechanism to get folks into that program," he added.
The content spend is expected to grow and the investment will go beyond original content to boost the live sports portfolio.
Overall, the e-commerce giant has continued to cash in on our new shop-work-relax-from-home habits in the first three months of this year, reporting a huge rise in sales and a tripling of profits.
Amazon’s overall revenue has gone up by 44 per cent year-on-year basis to reach $108.5 billion revenue. Net income skyrocketed to $8.1 billion compared to the corresponding quarter of 2020, when it stood at $2.5 billion. As online shopping has been one of the businesses to benefit in the ongoing pandemic, the quarterly results show how the digital drive is still fuelling its business.
Net sales are expected to be between $110.0 billion and $116.0 billion for the next quarter, or to grow between 24 per cent and 30 per cent as against the second quarter 2020, the company guided. Operating income is expected to be between $4.5 billion and $8.0 billion. The company will also host its Prime Day event sometime in the second quarter.
