Netflix metal sound, starring Riz Ahmed.
Source: Netflix
Amazon spent $ 11 billion on content for its video and music streaming services last year, the company said Thursday in its annual report, the latest sign of the company’s willingness to invest heavily. in entertaining Prime members.
Content spending of $ 11 billion in 2020 represents a sharp rise from a year earlier, when Amazon spent $ 7.8 billion, according to the report. Amazon defines video and music expenses as the costs of licensing and production, as well as the costs associated with digital subscriptions and content sold or rented.
Amazon has tried to grab the attention of consumers in a sea of rival video and music streaming deals from Netflix, Disney, Apple, Spotify and many more. In recent years, he has created a robust library of original and licensed videos, music, and podcasts, even through the acquisition of Wondery, the launch of podcasts in December.
Expenditure on video and music content quickly increased in 2020, as consumers spent more time indoors looking at screens amid the coronavirus pandemic. Amazon has also carried out more expensive film projects as its profile in Hollywood has increased.
The company has long been willing to make large investments in video and music content as a strategy to benefit Prime members. On Thursday, CEO Jeff Bezos announced in his annual shareholder letter that Amazon already has 200 million Prime subscribers, up from 150 million in early 2020. Amazon folds its music and video offerings into the subscription plan Prime, which costs $ 119 a year and includes other perks, such as free two-day shipping.