Amazon Prime Video Hits Profitability as Entertainment Arm Drives Billions in Revenue

Prime Video is now a profitable business on its own and is on track to generate tens of billions of dollars in annual revenue. Amazon CEO Andy Jassy shared the update during a quarterly earnings call on Thursday, noting that the streaming platform has become a major revenue stream four years after the $8.5 billion acquisition of MGM Studios in 2022.

Box Office And Shows

Amazon MGM Studios crossed $1.2 billion in global box office earnings for the year, driven heavily by the science-fiction movie Project Hail Mary. According to box office tracking website The Numbers, the Ryan Gosling film earned an estimated $684 million worldwide after its March release, though the studio also faced a box office setback with Melania. On the television side, hit shows include The Boys, Fallout, The Summer I Turned Pretty, Off Campus, Carrie, and Reacher. The fourth season of Reacher drew 66 million viewers worldwide in its first 28 days, prompting Amazon to put the fifth season into production and renew the series for a sixth season.

Live Sports Growth

Live sports continue to serve as a major driver for viewership on the streaming platform. Prime Video broadcasts events like NASCAR, the Masters, and UEFA Champions League football, alongside its NBA coverage which drew over two million viewers for its second season. Thursday Night Football proved to be a standout performer, with Nielsen figures shared by Amazon showing the first six games of the season averaged 17.7 million viewers, marking a 16% increase over the previous year.

Context

Major technology companies have increasingly expanded into digital entertainment and live sports broadcasting to diversify their revenue streams beyond core businesses like online retail. Streaming services use high-profile sports rights and original television series to attract large subscriber bases and boost long-term platform engagement.