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
