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Amazon Entertainment

How Many People Watch Amazon Prime Video

This story outlines the metrics Amazon executives have vaguely referred to when they say video draws people to Prime, and that those people in turn spend more on Amazon. About 26 million Amazon Prime customers watch video on the platform as of early 2017. And five million people have joined Prime thanks to its television offerings. There are some good details in here about how in some cases, the cost of a show per new Prime member was $63 – less than the annual Prime fee of $99. Reuters said it didn’t obtain enough data to determine the overall profitability of studios, but these figures help explain why Amazon is willing to spend boatloads of money on its struggling video division. There’s always tension between the financially driven side of Amazon and the creative oriented studio division, but the numbers here show why a well-liked show like Good Girls Revolt, which cost more than $1,500 per new subscriber just wasn’t financially sensible for the studio. It also shows why the company is now trying to spend smarter by producing global hits in hopes of attracting broader audiences (and thus luring more people into Prime memberships). That model of using bigger hit shows to subsidize the niche ones is central to how HBO has a slate of smaller shows while living off the success of Game of Thrones.

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