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How does Amazon Prime Video Make Money? An In-Depth Breakdown [2020 Update]
Our team at MAZ has worked in Connected TV and video streaming for nearly a decade. We've created TV streaming apps for some of the world's top media brands. So if you're a business looking to draw inspiration from a company like Amazon Prime Video, we want to help.
The history of Amazon Prime Video.
Amazon Prime Video
Photo via Konigi.com
In recent years, the platform has gone toe-to-toe with Netflix by establishing itself as an outlet for prestige television and film studio. Prime Video also found critical success with shows like Transparent and The Marvelous Mrs. Maisel. Due to Amazon's bundling its Prime Video revenue as with its overall subscription figures, it's hard to say exactly how much the company makes off the streaming service. However, Amazon recently projected they will reach 56 million subscribers by 2022.
As previously mentioned, unlike Hulu and Netflix, Prime Video doesn't technically offer monthly rates. According to the company, "customers are able to purchase or rent a selection of titles from the Prime Video catalog, without needing an Amazon Prime or Prime Video membership." However, these one-off rentals don't include full access to the platform's vast library of originals and licensed content that Prime members enjoy as a bonus. So Amazon Prime Video's business model is a hybrid TVOD (transactional video on demand) and SVOD (subscription video on demand).
Amazon's SVOD strategy has proven to be an example of a tried-and-true business service bundle model. It can serve as inspiration for all types of video publishers to utilize MAZ's OTT tools. If you're interested in learning how to build or grow your own video streaming business, including adding in subscriptions and ad support, reach out to a team member here at MAZ.
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