Prime Video is already the streaming platform that wastes the most money. Amazon doesn’t care at the moment.

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It is unusual to find comparisons of Prime Video with other streaming platforms. streaming, even in these times when, thanks to ‘The Lord of the Rings: The Rings of Power’, it is finally being considered a platform with the mechanics, uses and customs of the most conventional businesses in the industry such as Netflix or Disney +. The reason is clear: it is impossible to extrapolate the huge number of Amazon Prime users to those who are only Prime Video customers.

In this way, Prime Video almost reaches the number of Netflix subscribers (220 million users for the creators of ‘Stranger Things’, 200 for the Amazon platform), but the figures correspond to subscribers of the Amazon Prime service, which gives expenses free shipping among other advantages for customers of the virtual store. It has not transpired how many of them are only Prime Video users, but common sense suggests that they should be less than Disney + (152 million) or HBO Max (76.8 million).

What Prime Video spends. That common sense comes from a simple calculation carried out by Bloomberg in an article that tries to discern the real importance of the depth of Prime Video. Amazon has been in the in-house production business for as long as Netflix and has only sneaked a couple of series into the top of the most watched in the United States, something that Netflix has done up to eight times.

'The Rings of Power' is the most spectacular series of the moment, but it fails as an adaptation of 'The Lord of the Rings'

And his most viewed films are rarely his own productions, but purchases (for exclusive release or not) from third parties, or from large bookstores such as the recently acquired MGM. And of course, in terms of prizes, it cannot compete with established platforms such as HBO, Netflix or the multiple tentacles of Disney+ (Hulu, Fox, etc.)

And it’s not that Amazon doesn’t put enough money into fiction. To the exorbitant specific costs of star productions such as his adaptation of Tolkien are added, for example, some five billion dollars in sports broadcasting rights, which mainly affects the United States. Bloomberg calculates that Netflix invests 13.6 billion dollars in its own production, well above its direct competitors Disney + or Warner Bros. Discovery (which brings together Discovery, HBO Max and others).

However, Amazon is far above, with some 15,000 million dollars (of which, we insist about ten thousand in own production and five thousand in sports broadcasts). The conclusion, highlights Bloomberg, can be easily seen in the table above these lines: if it spends more money on its own productions than its direct competitor, Netflix. But then… why is it not noticeable?

A turn in business. It’s not noticeable, possibly because Amazon doesn’t care. As we said above, it is difficult to know exactly how many subscribers Prime Video has, and therein lies the key: Prime Video is actually one more hook for Amazon Prime to have more subscribers, which results in the business of online commerce, let’s not forget which is where the company records its true profits (nearly $500 billion in 2021, as reported by the company).

That is to say, the purpose of Amazon is for its customers to sink their heads into its ecosystem, which has multiple tentacles as we already anticipated in 2020: electronic books, cloud games, servers, home automation, music in streaming And a long etcetera. The investment in Prime Video is not profitable through viewings, but through additional subscriptions to Amazon Prime that they consume in any of the branches of the business. In this way, when there are waves of cancellations on other platforms due to price increases or because you have to choose one or two offers from among the many available, Prime Video is usually left out of those cuts in family economies.

Hold and distribute. Prime Video’s bet is, of course, that series in which they have invested an absolutely enormous amount of money, such as ‘The Lord of the Rings’, work. But not in an absolute sense, of the total number of views, but rather as a reinforcement for a platform that works more as a gateway to a huge video store than as a catalog of more or less powerful exclusive products. In that sense, Prime Video is closer to the point of view of Apple TV’s business, which continues to rent and sell, above all, third-party productions.

The rights to 'The Lord of the Rings' are a maze.  And it affects what 'The Rings of Power' can count and not

That is not to say that Prime Video does not have successful series: ‘The Boys’ and ‘Invincible’ have not only been notable successes, but also place Prime Video in a more adult and aggressive wave than Netflix or, of course, Prime Video, but at the same time more naughty than HBO and its quality television clothes. ‘Outer Range’ or ‘The Wheel of Time’ are other bets that have had a good impact and that show that Prime Video is a rival to take into account. Among other things, because they have all the time and money in the world.

It is unusual to find comparisons of Prime Video with other streaming platforms. streaming, even in these times when, thanks…

It is unusual to find comparisons of Prime Video with other streaming platforms. streaming, even in these times when, thanks…

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