Ever since Netflix expanded its operations to streaming media in 2007, video-on-demand (VOD) has become a phenomenon. Along with Netflix, companies like Amazon and Hulu have created a new market that is changing the way people view movies, TV shows, and video content in general. As of July 2022, Amazon’s on-demand service, Amazon Prime Video, was the third most downloaded video streaming mobile app, after Netflix and Disney+. What is more? It occupies the second position in the growing subscription video-on-demand industry, and although more and more VOD services are entering the market such as Disney+, HBO Max, and Paramount+, the number of Prime Video subscriptions is projected to rise.
Amazon enhances video content
As the market expands and demand increases, companies have begun to produce their own content. According to U.S. adults, Amazon Prime Video had the second-best high quality original content as of mid-2022, ahead of HBO Max and Disney+. In its attempt to compete with Netflix, Amazon spends hundreds of millions of dollars on production and marketing expenses for its original series. The company’s content expenditure was forecast to reach 18.4 billion U.S. dollars by 2026. Furthermore, the highly anticipated TV series “The Lord of the Rings” is estimated to be the largest TV show ever made, with costs of around 465 million U.S. dollars only for the first season.
In addition to its original programming, Amazon has also continuously increased its selection of TV shows and movies. Movies are the most common content type available on Amazon Prime Video. In the United Kingdom for example, the program included over 8,100 movies as of January 2023, which is an 86 percent share of the whole content provided by the service. And due its merger with MGM Studios, Amazon’s library has recently increased by MGM’s collection of over 4,000 movies and 17,000 TV shows.
Prime Video subscribers
Amazon is uniquely positioned within the VOD industry, given that millions of consumers already use the company’s other services for everything from shopping to cloud computing. Around 200 million people subscribed to Amazon Prime worldwide as of 2020. Prime Video is expected to amass 250 million global subscribers by 2027. As expected, younger demographics seem to be the most frequent viewers of Amazon’s video content. Around 54 percent of zoomers and two in three millennials from the United States stated that they have watched Amazon Prime Video at least once as of November 2022.
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