2 Reasons Why Prime Video Is Important
Investors studying Amazon may prefer e-commerce operations or Amazon Web Services (AWS) because of higher revenue and profit share. A small part of a company that doesn’t move the needle from one income statement to another is easily overlooked.
Taking a comprehensive look at the company, Prime Video stands out. Investors are paying more attention to the company’s video streaming service for two reasons.
In April 2005, Jeff Bezos launched Amazon Prime to revitalize the e-commerce business. However, the number of core members initially increased gradually. To strengthen its membership, the company added Amazon Instant Video to Prime membership in 2011. In 2018, Amazon renamed Instant Video to Prime Video.
The higher the profile of Amazon video content, the more people want to see it. This leads to greater engagement than new Prime members or existing members.
Many people believed that Prime Video would only ever be a way for Amazon to sign people up for a Prime subscription – a loss leader. That perception is gradually changing as Prime Video sees an opportunity in advertising.
Not all Prime Video content is completely ad-free
Amazon purchased IMDb in 1998, and the platform has since evolved into an ad-supported streaming service known as FreeVee.
Amazon distributes FreeVee as a standalone app and includes ad-supported content from FreeVee within the Prime Video service. And Amazon intends to rapidly expand FreeVee’s ad-supported library, which includes original content such as Bosch: Legacy, a spinoff of Prime Video’s longest-running original series. More high-quality content will be added soon. First, in March 2022, the company completed its acquisition of film and television studio Metro-Goldwyn-Mayer, bolstering its content library. Amazon is not directly affected by the Facebook layoffs or the collapse of the cryptocurrency market. It affects consumer and business spending more than any other company. It is the second largest company in the United States by revenue, and most of its business is based on consumer and corporate spending on cloud infrastructure and advertising.
