Amazon’s Prime Video service has shifted its strategy toward live sports and away from original TV shows and movies, aiming to meet the company’s internal profitability goals, The Information reported Friday.
Amazon’s decision marks a turning point for the tech giant, which is no longer focusing on original content to generate revenue.
Live sporting events, with their timely viewership, provide valuable opportunities for targeted advertising placements, and have encouraged streaming companies to land more live content deals to boost advertising revenue.
Amazon CEO Andy Jassy aims to make Prime Video profitable by the end of 2025, and this move is part of the strategy to achieve that goal, according to the report, citing two sources familiar with the plans. of the company.
Amazon has invested heavily in sports content, spending about $3 billion a year on broadcast rights to major leagues such as the NBA and NFL, according to the report.
-In July, Amazon, ESPN (Walt Disney) and NBCUniversal (Comcast) signed the rights to broadcast NBA games in an 11-year deal valued at $77 billion. Amazon also began placing ads on its Prime Video platform last year.
Netflix, Prime’s biggest rival, has also made a strong foray into live sports, signing deals for NFL games on Christmas Day, a high-profile boxing match between Jake Paul and Mike Tyson, as well as WWE RAW live events.
After a 2022 planning meeting, Amazon’s entertainment team ordered fewer film and TV projects, according to the report, which cited eight producers with current or recent projects with the company.
For 2024, Amazon’s annual budget for original and licensed movies, TV shows and live sports was around $7 billion, according to the report.
