According to The Information, Amazon's Prime Video has reportedly shifted its strategic focus to prioritize live sports over original television shows and movies in a bid to meet internal profit targets.
This move signifies a significant departure from Amazon's traditional emphasis on original content as a primary revenue generator. Live sports events provide real-time viewership opportunities for targeted ad placements, prompting streaming companies to pursue more live content deals to increase ad revenues.
Amazon CEO Andy Jassy is working towards making Prime Video profitable by the end of 2025, with this shift being a key component of that objective, as per the report citing sources familiar with the company's strategy.
Amazon's significant investment in sports content includes an annual expenditure of about $3 billion on broadcasting rights for major leagues like the NBA and NFL.
Moreover, Amazon, in collaboration with Walt Disney's ESPN and Comcast-owned NBCUniversal, secured the NBA games rights in a lucrative 11-year, $77 billion deal in July. The company has also introduced ads on its Prime Video platform.
Netflix, Prime's main competitor, has also ventured into live sports, clinching deals for NFL games on Christmas Day, a notable boxing match between Jake Paul and Mike Tyson, and live WWE RAW events.
Following a 2022 planning meeting, Amazon's entertainment division has reportedly scaled back on commissioning film and TV projects, according to the report referencing insights from eight producers working with the company.
Reportedly, Amazon allocated approximately $7 billion in the 2024 budget for original and licensed movies, TV shows, and live sports content.