One of the big questions right now about streaming is the question of if streaming services can become profitable. Now, Amazon’s CEO has come out and said he believes Prime Video can be profitable on its own. This is an important move as historically, Prime Vidoe has been used to push subscribers to Amazon’s Prime subscription service.
“We have increasing conviction that Prime Video can be a large and profitable business on its own. This confidence is buoyed by the continued development of compelling, exclusive content (e.g. Thursday Night Football, Lord of the Rings, Reacher, The Boys, Citadel, Road House, etc.), Prime Video customers’ engagement with this content, growth in our marketplace programs (through our third-party Channels program, as well as the broad selection of shows and movies customers rent or buy), and the addition of advertising in Prime Video.” Said Andy Jassy in a letter to investors.
Now the question is when will Prime Video become profitable if it wasn’t bundled in with Prime.
Also Amazon’s CEO gave an update on its home internet service. “In October, we hit a major milestone in our journey to commercialize Project Kuiper when we launched two end-to-end prototype satellites into space, and successfully validated all key systems and sub-systems—rare in an initial launch like this. Kuiper is our low Earth orbit satellite initiative that aims to provide broadband connectivity to the 400-500 million households who don’t have it today (as well as governments and enterprises seeking better connectivity and performance in more remote areas), and is a very large revenue opportunity for Amazon. We’re on track to launch our first production satellites in 2024. We’ve still got a long way to go, but are encouraged by our progress.” Jassy said in the letter to investors.
Prime Video and Project Kuiper its home internet service will be very important for the future of Amazon as it looks to diversify itself.
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