Investing.com — Amazon (NASDAQ:) Prime Video is apparently shifting its strategy toward streaming live sports, moving away from its traditional reliance on original TV series and movies. The move is part of an effort to meet the company’s profitability goals, according to a report published Friday by The Information.
The tech giant’s decision marks an important turning point in its search for new sources of revenue. Live sporting events, with their real-time viewership, provide lucrative opportunities for targeted ad placement. This potential has prompted streaming companies to secure more live content deals to increase their advertising revenue.
Amazon CEO Andy Jassy has set a goal of making Prime Video profitable by the end of 2025. This strategic shift is key to achieving that goal, according to the report, which cites two sources familiar with the company’s plans. business.
The company has invested heavily in sports content, spending around $3 billion a year on broadcast rights to major leagues like the NBA and NFL. In July, Amazon partnered with Walt Disney’s ESPN and Comcast’s NBCUniversal to secure the rights to broadcast NBA games in an 11-year deal valued at $77 billion. Amazon also began integrating ads on its Prime Video platform last year.
-Competitor Netflix is also entering the live sports space, securing deals for Christmas Day NFL games, a high-profile boxing match between Jake Paul and Mike Tyson, and live WWE RAW events.
Following a 2022 planning meeting, Amazon’s entertainment team has reportedly ordered fewer film and TV series projects. The report cites eight producers with current or recent projects with the company. For 2024, Amazon’s annual budget for original and licensed movies, TV series and live sports was estimated at around $7 billion.
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