Amazon CEO Says Prime Video Is Profitable and Generates ‘Tens of Billions of Dollars’ Annually; Content Spending Grew 7% in Q3 to $5.9 Billion
Amazon CEO Andy Jassy said Prime Video is profitable on its own, with annual revenue running at tens of billions of dollars. The comments highlight a growing entertainment business as Amazon faces investor concern over heavy spending on AI infrastructure and slower advertising growth.
Amazon reported $5.9 billion in video and music expenses in the third quarter, up about 7% year on year, and $18.8 billion for the first nine months, up about 20%. Viewership figures included 17.7 million average viewers for Thursday Night Football through six games, more than 2 million US viewers for the NBA season-opening doubleheader, and 66 million global viewers for Reacher’s fourth season in its first 28 days.
In short
- Prime Video is profitable, with annual revenue in the tens of billions.
- Third-quarter video and music expenses rose 7% to $5.9 billion.
- Amazon cited strong audiences for sports and series.
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The case for
Prime Video’s reported profitability and tens of billions of dollars in annual revenue suggest that substantial spending on sport and original programming can build a durable business, attract large audiences and strengthen Amazon’s wider subscription offering. Supporters may argue that rising content costs are a reasonable investment if they sustain growth and returns over time.
The case against
Investors may question whether rising video and music costs are delivering sufficient returns, particularly as Amazon also commits heavily to AI infrastructure and faces slower advertising growth. The audience figures and broad revenue claim do not, on their own, show how profitable individual programmes are or whether content spending is the best use of capital.
Explained simply
Amazon is an online retailer and technology company that also sells subscriptions and entertainment through Prime, its membership service. Prime Video offers films, series and live sport, including American football and basketball, and competes with other streaming services for viewers and rights to popular programmes.
Andy Jassy leads Amazon, which reports its results to investors. The company’s video and music costs include spending on programmes, films and sports; these costs have been rising as Amazon expands its entertainment offering.
Prime Video’s finances matter because investors want to understand how Amazon’s different businesses contribute to its overall performance. The company is also spending heavily on artificial intelligence infrastructure, while its advertising growth has slowed.
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