The Intelligence from The Economist
Show and sell: Amazon v Hollywood
Episode guests
Podcast summary created with Snipd AI
Quick takeaways
- Amazon's success in video streaming is not solely dependent on critically acclaimed shows but also on revenue diversification through advertising and selling other providers' content.
- Revisions to the UK's economic data reveal that the country's post-pandemic recovery was stronger than initially believed, with GDP numbers indicating a 0.6% higher economy than pre-pandemic size, changing the perception of its relative performance compared to other economies.
Deep dives
Amazon's Video Streaming Strategy
Amazon's video streaming service, Prime Video, is gaining momentum with around 155 million monthly viewers. Despite not all their shows being critically acclaimed or highly rated, Amazon is finding success in other revenue streams like advertising and selling other providers' content. The company's extensive data on consumer behavior and its ability to measure ad effectiveness make it an attractive platform for advertisers. Additionally, Amazon's strategy of becoming a landlord of streaming content, where they show content from other providers and take a cut of the revenue when users subscribe or purchase content, mimics their successful e-commerce model. While other streamers focus on huge hits, Amazon's diversified revenue streams allow them to make a solid business out of video without necessarily relying on blockbuster successes.
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