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Amazon increased content spending to $16.6B in 2022, with $7B going toward original content

During its earnings call for the fourth quarter on Thursday, Amazon provided a breakdown of the expenditures associated with its content business. The company said that its content expenses increased by 28%, to $16.6 billion in 2022, from $13 billion in 2021.

Approximately $7 billion of total was spent Now Originals, live sports programming, and licenced third-party video content bundled with Prime, as reported by Chief Financial Officer Brian Olsavsky. To put it in perspective, Amazon spent $5 billion on the same three content categories in 2021.

Amazon reportedly spends more than $1 billion each year for the NFL streaming rights, however the business has not disclosed how much it spends on individual titles. More than half a billion dollars were spent on the first season of “The Lord of the Rings: Rings of Power,” Amazon’s highest-rated original series in any territory.

Streaming platforms understand, at this point, that creating their own unique content is essential to distinguishing out from the crowd and keeping subscribers. To better compete with Disney, Netflix, and HBO Max, Amazon is probably increasing its content spending. While Netflix and HBO Max both spend over $18 billion for content annually, Disney spends around $33 billion. Keep in mind that almost $11 billion of Disney’s total goes into sports rights. Paramount+ just announced that it intends to double expenditure on streaming content to $6 billion by 2024.

However, Amazon does not reveal how many subscribers it had to its streaming service. Nonetheless, Olsavsky bragged about Prime Video programming being a “major driver of Prime member engagement and new Prime member acquisition” during the results conference.

More than 100 million people throughout the world saw “The Rings of Power,” and they watched it for a total of over 24 billion minutes. The firm also said that more people signed up for Prime all across the globe because of “The Lord of the Rings” series during the debut timeframe.

Amazon also noted an increase of 11% in viewing among fans aged 18 to 34 years old compared to the 2021 season, and claimed that Thursday Night Football attained the youngest median age audience of any NFL broadcast package since 2013.

According to the corporation, an average of 11.3 million people watched the TNF games. 15,3 million people watched the first TNF game available exclusively on Prime Video. Amazon predicted 12.5 million weekly views for the 2022 season before it even started.

Among the other new shows coming to the streaming service in 2022 are Harry Styles’ “My Policeman,” the third season of “Jack Ryan,” and the Western drama “The English.”

The $8.5 billion purchase of MGM by Amazon in 2022 is also helpful. The MGM-produced Netflix series “Wednesday” debuted at the top of Nielsen’s weekly streaming rankings and was nominated for two Golden Globes, as the firm pointed out. In the month of December, “Wednesday” surpassed 1.02 billion total hours seen on Netflix, making it the second most popular English-language series. In excess of 150 million homes tuned in.

Customers in the United States now have access to almost 15,000 hours of premium entertainment thanks to the reintroduction of HBO Max as a Prime Video Channel option.