Amazon saw 24% growth in their Thursday Night Football audience in 2023. Subscribers will be rewarded with even more sports, but not without enduring more ads — unless they pay extra, of course.(Photo by Leslie Plaza Johnson/Icon Sportswire via Getty Images)
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.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
