Amazon Prime Video's Next Moves: More Sports, More Ads

For the entertainment industry, 2023 was a year to forget. Monthslong work stoppages by Hollywood actors and writers brought projects to a screeching halt, and left many programmers searching for ways to fill their schedules. 

But amid this turbulence, Amazon stood out: It spent $18.9 billion on music and video in Q4 alone, an increase of 14% over 2022, and was able to point to wins with the Prime Video series Reacher, the Golden Globe–nominated film Air, and Thursday Night Football, which saw its audience grow by 24%. That audience growth may also be responsible for the e-commerce giant’s next big moves: more live sports—and more ads. 

Earlier this week, Prime Video customers were greeted with a message on the platform: pay $3 a month, or start seeing commercials during formerly ad-free Prime Video content. While it may not be what users wanted, the logic isn’t hard to grasp. Amazon already delivers targeted ads to its customers just about everywhere else, so why not take advantage of its own programming? 

During the company’s Q4 earnings call, CFO Brian Olsavsky called the expansion of ads “an important part of the total business model.” Olsavsky also reiterated that the company was aiming to show fewer ads than broadcast television and other streaming platforms. 

And sports fans may soon have a few more reasons to watch Prime Video. In March 2023, Diamond Sports Group, which owns 18 networks under the Bally Sports banner, filed for Chapter 11 bankruptcy protection. With that announcement, fans of an astonishing 37 professional sports teams — including MLB’s Atlanta Braves and the NBA’s Los Angeles Clippers — suddenly didn’t know whether they’d be able to watch games. 

Enter Amazon. Weeks ago, the company announced plans to invest $115 million in Diamond, to allow it to continue operations and to give Prime Video a pathway to broadcasting games for several new teams, such as the NHL’s Tampa Bay Lightning and MLB’s St. Louis Cardinals. While the plan still needs to be approved by a bankruptcy judge, and other details like pricing and availability need to be worked out, Amazon would suddenly gain access to dozens, if not hundreds, of new live sporting events,  something it is no doubt bullish about following the success of Thursday Night Football. 

While some consumers may still consider Amazon mostly a place to order toilet paper and cleaning products, it’s clear the company has designs on becoming an entertainment powerhouse on par with Disney. It continues to pour money into live sports, season two of The Lord of The Rings: Rings of Power is set for release later this year, and Amazon-owned MGM should have an answer as to which megastar will be taking up the James Bond mantle by 2025. 

Combine that with new and upcoming Prime Video releases like Mr. and Mrs. Smith, starring Donald Glover and PEN15’s Maya Erskine, and the Jennifer Lopez documentary This Is Me…Now: A Love Story, and viewers should get used to watching a lot more Amazon content. And maybe a few more ads. 

More In Business

US Economic Growth for Q1 Revised Up to 1.4%

The American economy expanded at a 1.4% annual pace from January through March, the slowest quarterly growth since spring 2022, in a slight upgrade.

Which Retailers Are Out & Proud... And Which Are Not

Find out which brands and retailers have embraced Pride in 2024 and which are quietly taking steps back. Watch!

Good News? Your Bank Is Prepared for Economic Disaster

While consumers might be worried about their finances, the country's biggest banks are prepared to avoid collapse, according to the Fed's stress test.

Watchdog Slams IRS Identity Theft Case Delays as “Unconscionable”

An independent watchdog within the IRS reports that while taxpayer services have vastly improved, the agency is still too slow to resolve identity theft cases. And National Taxpayer Advocate Erin Collins says those delays are “unconscionable.” Erin M. Collins said in the report released Wednesday that overall the 2024 filing season went smoothly, though IRS delays in resolving identity theft victim assistance cases are worsening. It took nearly 19 months to resolve self-reported identity theft cases as of January, and Wednesday's report states that now it takes 22 months to resolve these cases.

A.I. Investments Carry Amazon Over $2 Trillion Valuation Threshold

Amazon.com Inc. surpassed $2 trillion in market value for the first time in afternoon trading on Wednesday. The push higher for Amazon’s stock market valuation comes a little more than a week after Nvidia hit $3 trillion and briefly became the most valuable company on Wall Street. Nvidia’s chips are used to power many AI application and its valuation has soared as a result. Amazon has also been making big investments in AI as global interest has grown in the technology. Most of the company’s focus has been on business-focused products.

The Costs of Extreme Heat Go Far Beyond Higher AC Bills

Climate change doesn’t just mean more extreme weather – it also leads to billions of dollars in lost productivity, tourism, and stresses infrastructure.

How Worried Should Nvidia Be About Their Stock?

Nvidia's shares are on a roller coaster, losing lost billions in market value last week. What's next for the ride?

The Federal Government Is Making Sure Banks Are Prepared for the Worst

It’s an annual tradition: the Fed’s banking ‘stress test.’ A year after the regional banking crisis, there are good reasons to make sure they’re prepped.

Budget-Friendly Tips for Your Swiftie Summer Adventures

Summer is upon us, which means weddings, trips overseas, and trips to see Taylor Swift. Avoid a “Cruel Summer” with these budget-friendly tips and tricks.

Nvidia Is the Star of the Market, But Don't Overlook These Other Names

While Nvidia's meteoric rise led it to briefly dethrone Microsoft as the world's biggest public company, there's a lot more going on in this market than A.I.

Load More