AMAZON PUTS PRIME VIDEO REVENUE RUN RATE IN TENS OF BILLIONS

Amazon chief executive Andy Jassy said Prime Video has a revenue run rate in the tens of billions of dollars and is profitable in its own right. He made the statement on Thursday during Amazon’s quarterly earnings call. Jassy had told investors in May that Prime Video was profitable, but had not given that revenue figure. His latest figure describes the service’s current pace of revenue, rather than revenue recorded over a full year.

Amazon bought MGM for $8.5 billion four years ago and has expanded its film business alongside Prime Video. Its slate includes Project Hail Mary, a science fiction adaptation of Andy Weir’s novel starring Ryan Gosling. It also includes Verity, an adaptation of Colleen Hoover’s thriller. Amazon uses films to attract audiences to Prime Video and strengthen the value of Prime membership.

Prime Video draws revenue from subscriptions and advertising, while Amazon also earns money from digital rentals, theatrical distribution and licensing. The company links its media business with live sports, shopping data and its global distribution network. Jassy said the service “has emerged as a significant business with a revenue run rate in the tens of billions of dollars and is now profitable in its own right”. Amazon’s account places Prime Video’s financial performance within a business that also sells retail memberships, devices and other services.