Amazon’s Sound of Metal, starring Riz Ahmed.
Source: Amazon
Amazon spent $ 11 billion on content for its video and music streaming services last year, the company revealed in its annual report on Thursday, the latest sign of the company’s willingness to invest heavily in Prime members’ entertainment.
Content spending of $ 11 billion in 2020 is a sharp increase from a year earlier, when Amazon spent $ 7.8 billion, according to the report. Amazon defines video and music expenses as any costs of licensing and production, as well as costs associated with digital subscriptions and content sold or rented.
Amazon has tried to grab the attention of consumers in a sea of rival video and music streaming offerings from Netflix, Disney, Apple, Spotify and many more. Over the past few years, it has built a robust library of original and licensed videos, music, and podcasts, including through the December acquisition of Wondery.
Expenditure on video and music content has risen rapidly in 2020, as consumers have spent more time indoors watching screens in the coronavirus pandemic. Amazon has also pursued more expensive film projects as its profile in Hollywood has grown.
The company has long been willing to make large investments in video and music content as a strategy to support Prime membership. On Thursday, CEO Jeff Bezos announced in his annual shareholder letter that Amazon now has 200 million Prime subscribers, up from 150 million in early 2020. Amazon shares its music and video offerings in the Prime subscription plan , which costs $ 119 per year and includes other benefits, such as free two-day delivery.