Home Amazon content spending nears $19 Billion for 2023

Amazon content spending nears $19 Billion for 2023

An annual report posted by Amazon has revealed its spending on media content has increased to almost $19 billion.

As one of the Big Five US tech giants, it owns several leading platforms, including Amazon Prime, Amazon Music, Twitch, and Audible.

As reported by Variety, Amazon ran up a bill of $18.9b for TV shows, movies, and music to be utilized on its services in 2o23, reflecting a 14% increase on the $16.6b figure amassed the previous year. The information came to light after the company filed its 10-K annual report at the US Securities and Exchange Commission.

The figures are inclusive of licensing and production costs relating to content offerings across Amazon Prime and other digital subscriptions, rentals, and sales.

In contrast, Netflix spent an estimated $13 billion acquiring and producing content in 2023, with plans to increase that amount to $17 billion in 2024.

Primed for success

On the back of the spending increase, Amazon held its 2023 Q4 Earnings Call on Thursday with a continued belief in the development of Amazon Prime as a profitable asset in waiting.

CEO Andy Jassy stated, “We have increasing conviction that Prime Video can be a large and profitable business on its own, and we’ll continue to invest in compelling exclusive content for Prime members like Thursday Night Football, Lord of the Rings, Reacher, Mr. & Mr. Smith, Citadel, and more,”

He continued on the introduction of ads by default on Prime Video (29 January) unless subscribers opt to pay an extra monthly fee for an ad-free service ($2.99/US) on how “we’ll be able to continue investing meaningfully in content over time.”

The initiative is anticipated to raise an extra $3 billion in incremental revenue over 2024.

Amazon’s content spending includes a significant rights deal with the NFL, with the exclusive package to stream Thursday Night Football, said to be worth around $1 billion per year to the league over the 11-year contract. This can be viewed as speculating to accumulate with Jassy heralding Prime Video’s second season of TNF as “a rousing success by all accounts,” underpinning a year-on-year increase of viewers by 24%.

The sense of achievement won’t be shared by many in the company’s workforce after Amazon laid off hundreds of employees last month across its stable of subsidiaries, including the axing of 35% of Twitch’s headcount.

Amazon’s biggest-ever corporate cut came in 2022 when a whopping 27,000 positions were lost.

Image: Erik McLean/Pexels.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Graeme Hanna
Tech Journalist

Graeme Hanna is a full-time, freelance writer with significant experience in online news as well as content writing. Since January 2021, he has contributed as a football and news writer for several mainstream UK titles including The Glasgow Times, Rangers Review, Manchester Evening News, MyLondon, Give Me Sport, and the Belfast News Letter. Graeme has worked across several briefs including news and feature writing in addition to other significant work experience in professional services. Now a contributing news writer at ReadWrite.com, he is involved with pitching relevant content for publication as well as writing engaging tech news stories.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.