Amazon Video is now the second-largest video subscription service in the United States. And Amazon seems to be really doubling down on video and music as a way to keep Prime members happy. Now it has come out that in 2015 Amazon spent over $3 billion dollars on video and music content for their Prime subscribers.
In response to questions about slowing growth of Prime, an Amazon rep said, We expect this, as the program matures in the US. So, member retention becomes even more important. Many see free two-day shipping as the primary reason customers try Amazon Prime, but enhanced streaming video and other offerings provide added incentive for members to continue to renew.
In just 2015 Amazon spent over $100 million dollars on original content. This investment seems to be paying off as Amazon won several Golden Globes this year for shows made in 2015.
Amazon is not the only company putting money into cord cutting. Both Netflix and Hulu set records for content and spending on content. And Hulu is spending over a million dollars for each episode of Seinfeld on top of the millions its spending for all the shows it is taking from Netflix.
Netflix is also planning on doubling the number of original shows it makes in 2016 compared to 2015. No matter what way you look at it cord cutting is growing and companies are taking notice.