Amazon's Prime Video Now Makes Tens of Billions, Proving Everyone Who Said Streaming Was a Money Pit Was Just Early
Amazon's streaming service is now profitable and eyeing tens of billions in revenue, because nothing says 'we're fine' like a CEO casually dropping a number with the word 'billions' in it.
Four years after Amazon dropped $8.5 billion on MGM, the e-commerce giant has discovered that Hollywood is, in fact, a lucrative business - a revelation that presumably arrived right around the time Project Hail Mary started printing money.
On Thursday's quarterly earnings call, Amazon CEO Andy Jassy announced that Prime Video "has emerged as a significant business with a revenue run rate in the tens of billions of dollars and is now profitable in its own right." Jassy had already told investors in May that Prime Video was profitable, but the "tens of billions" figure is the new, shinier detail - because nothing says "we're fine" like upgrading "profitable" to "profitable with a really big number attached."
Amazon MGM Studios has raked in more than $1.2 billion in global box office sales so far this year, buoyed by hits like Project Hail Mary and Verity. Project Hail Mary alone grossed an estimated $684 million worldwide, according to The Numbers - making it Amazon MGM Studios' highest-grossing release ever. The film stars Ryan Gosling, is based on Andy Weir's novel, opened in theaters in March, and has apparently convinced Amazon that yes, people will still leave their couches for space movies. The studio also had at least one notable flop this year: Melania, which we'll just leave there.
Jassy rattled off a parade of TV hits including Carrie, The Summer I Turned Pretty, The Boys, Off Campus, Fallout, and Reacher. Season 4 of Reacher drew 66 million viewers globally in its first 28 days, per the company, with Season 5 currently filming and a sixth season already picked up. (And if you don't follow Reacher star Alan Ritchson on Threads, you're missing an actor who has turned the friendly-yet-witty reply into an art form - a skill that is apparently more valuable than any of us realized.)
Sports have also been a significant driver. Prime Video broadcasts NASCAR, the Masters, and UEFA Champions League soccer, but Thursday Night Football appears to be its biggest success this year. The first six games of this season averaged 17.7 million viewers, up 16% from last year, according to Nielsen figures Amazon shared. The streaming service also attracted over 2 million viewers for its second season of NBA on Prime, Nielsen said - proving that if you put enough sports on a streaming service, people will eventually forget they once swore they'd never pay for another subscription."
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