Amazon spends 2.5x more on content than HBO

We nearly passed right over this article on Business Insider because it didn’t seem all that newsworthy to us — the ins and outs of how Amazon is producing its video content.  But then near the bottom came some very interesting figure:

Global dominationJPMorgan has estimated that Amazon will spend $4.5 billion on video in 2017. While this would still sit below Netflix’s $6 billion content budget for 2017, it would mean a big step up for Amazon. For reference, HBO spent around $2 billion on programming in 2016, and while Time Warner CEO Jeff Bewkes said that budget would rise a bit this year, he characterized the 2017 HBO programming budget as a “couple of billion dollars” in December.

Amazon spending more than twice what HBO is spending on programming says a lot about where Amazon things the market is and the power of original content to its Amazon Prime offering.

 

Source: How Amazon makes TV, according to Jill Soloway of ‘Transparent’ – Business Insider

 

 

About the Author

Chris Broussard
I'm the Co-Founder and President of Tematica Research and editor of Thematic Signals, which aims to uncover confirming data points and items to watch for our list of investing themes. Whether its a news item, video clip, or company commentary, we've included this full list of items literally "ripped from the headlines." I have been involved in financial services marketing and publishing for over 20 years – having held senior level positions with financial publishers, financial services corporations and providing marketing support and consulting services to financial institutions and independent financial advisors. My background in digital marketing, financial services and consumer research provides me with a unique perspective on how to uncover the underlying proof points that are driving the themes our Chief Investment Officer Chris Versace utilizes in our various Tematica publications.

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