Amazon Upping Video Content Spending in Q3

27 Jul, 2017 By: Erik Gruenwedel

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Amazon is increasing spending on original and third-party video content — a significant move on top of content spending hikes in the first of the year compared to the previous-year period.

The e-commerce giant is reportedly spending $4.5 billion on video content in 2017, which is double spending in 2016. The spending includes tripling money spent on original TV shows and movies.

The amount still trails rival Netflix, which is spending $6 billion on content this year, including 40 to 50 original movies.

“We’ll … be increasing video spend on a sequential year-over-year basis in Q3,” CFO Brian Olsavsky said on company’s second-quarter fiscal call.

The executive said Amazon is continuing to experiment with physical store locations — notably bookstores — featuring curated titles.

“It’s a great opportunity for people to touch and feel our devices,” he said, adding that a store visit in Seattle saw consumers familiarizing themselves with Echo and Fire TV streaming media players.

“I saw first-hand the customer experience,” Olsavsky said. “That’s what we’re seeing as a benefit to the physical stores right now.”

He said rollout in June of the $229 Echo Show personal assistant with messaging, five-megepixel camera, and seven-inch video screen functionality is going well.

“We’re very excited about the potential,” he said.

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