Amazon plans a major strategic shift for the video portion of its “Prime” subscription. Instead of expanding original films and series, the company reportedly wants to focus more on live sports broadcasts. Central to this approach is the prospect of increased revenue from targeted advertising to subscribers.
That emerges from a report by The Information (cited by Reuters), according to which Amazon has been considering these changes for some time. As early as 2022, a strategy meeting concluded that Amazon would divert funds away from original films and series and into more live sports. Since then, Amazon is said to have reduced spending on scripted content, The Information notes, citing eight producers who currently or formerly work with Amazon. Separately, two Amazon insiders allegedly stated that CEO Andy Jassy wants the Prime division profitable by 2025.
3 Billion per Year for Sports
According to the report, Amazon’s total budget for originals in 2024 was around $7 billion. Over an unspecified timeframe, the company has spent about $3 billion annually on sports rights such as American Football (NFL) and Basketball (NBA). In mid-2024, Amazon joined a massive deal for NBA broadcasting rights (shared with Disney and NBC Universal), securing an 11-year contract valued at $77 billion overall.
Internationally, Amazon’s interest in sports has included coverage of top-level football tournaments, such as the Champions League. The brand’s involvement follows the same overall approach, seeking partial rights and leveraging its own streaming platform to draw in new Prime subscribers.
Worldwide, Amazon’s pivot to sports in this competitive streaming market aligns it with a similar strategy from its main rival Netflix, which also sees growth potential in live sports rights. Netflix has begun picking up deals in major sports, streaming certain wrestling events and American football games, aiming to appeal to fans wanting real-time match experiences rather than just on-demand entertainment.
Changing the Prime Mix
Amazon’s new direction toward live sports and away from extensive scripted content means:
- Reduced outlay on major big-budget series or films.
- Strengthened push for sports rights in American football, basketball, and possibly other globally popular leagues.
- Shift in ad revenue from more conventional streaming ads to dynamic, “personalised” ad experiences during live events, an approach that’s already tested in some sports markets.
Still, Amazon’s ultimate plan remains unclear. While the firm continues producing some high-profile content, the internal pivot suggests that if you’re a Prime Video customer mainly for exclusive TV series or film originals, the selection might gradually thin out—whereas fans of sports coverage could see new perks, expansions, or exclusive matches.
It also signals a possible intensification of competition with Disney’s ESPN or other established sports broadcasters. However, Amazon’s significant resource advantage, plus the synergy with its existing subscriber base, could make Prime Video a formidable contender in sports streaming.