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Is Amazon Spending Too Much to Grow Prime Memberships?

January 24, 2023

Motley Fool Amazon's content expense increased by $2 billion through the first nine months of 2022, up over 20% year over year. Keep in mind that only includes a portion of The Lord of the Rings: The Rings of Power series it debuted in September and Thursday Night Football, which premiered that same month. Both cost Amazon hundreds of millions of dollars to obtain the rights to and produce. So investors should expect a substantial increase in content expenses in the fourth quarter.

To its credit, the increase in content spending appears to be paying off. Prime Video had more paid subscribers watching its service than any other streaming service in 2022, according to a report from Parks Associates. And while big events like Thursday Night Football appear to be attracting subscribers, it might not be enough to offset shoppers leaving the program.

From the article, "Is Amazon Spending Too Much to Grow Prime Memberships?," by Adam Levy.

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Is Amazon Spending Too Much to Grow Prime Memberships?

Previously In The News

63% Of Americans Unfamiliar With Virtual Reality; Less Than 6% Plan On Buying A Headset Soon

Building the Future of Smart Home Security > Engineers must invent new technology to enhance security products' abilities

Network negotiations: combining content and attracting consumers

A Third Of Consumers Get News From Social Media

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