In a strategic pivot, Amazon.com Inc. AMZN is redirecting its Prime Video efforts in the direction of dwell sports activities content material, a transfer aimed toward reaching profitability by the top of 2025.
What Occurred: Amazon.com is pivoting its Prime Video technique in the direction of dwell sports activities, transferring away from unique TV exhibits and flicks, in accordance to a report by The Info. This strategic shift is aimed toward assembly inner revenue targets by the top of 2025.
Based on the report, Amazon is investing roughly $3 billion yearly in sports activities content material, together with broadcasting rights for main leagues just like the NBA and NFL. This transfer is a part of CEO Andy Jassy’s plan to make Prime Video worthwhile.
The deal with dwell sports activities is pushed by the potential for focused promoting alternatives throughout real-time viewership.
In July, Amazon, alongside Walt Disney Co. and Comcast Corp., secured an 11-year deal valued at $77 billion to broadcast NBA video games. The corporate has additionally began integrating advertisements inside its Prime Video platform to reinforce income streams.
The report highlights that after a 2022 planning assembly, Amazon’s leisure group has decreased the commissioning of latest movie and TV tasks. For 2024, the corporate’s funds for unique and licensed content material, together with dwell sports activities was round $7 billion.
Why It Issues: This shift in the direction of dwell sports activities is a part of Amazon’s broader technique to capitalize on the profitable sports activities market. In August 2024, Amazon signed a $100 million take care of the Kelce brothers for his or her well-liked sports activities podcast, additional embedding itself within the NFL ecosystem.
This aligns with CEO Andy Jassy’s imaginative and prescient to maintain promoting minimal in comparison with opponents like Netflix and YouTube, as famous in an August assertion.
Moreover, Amazon’s introduction of an ad-supported model of Prime Video has disrupted the streaming advert market, compelling rivals like Netflix to regulate their advert pricing methods, as reported in June 2024. This strategic deal with dwell sports activities and progressive promoting fashions is a part of Amazon’s efforts to reinforce its aggressive edge and profitability within the streaming business.
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