Report Reveals Amazon's Internal Prime Video Data

Report Reveals Amazon's Internal Prime Video Data

Around 26 million people in the United States stream videos on Amazon Prime, according to Reuters.

Although Amazon has also not disclosed its total number of Prime memberships, recent estimates put the count at about 79 million people in the US.

The report specifically mentions "The Man in the High Castle", an Amazon Prime Original drama that premiered in 2015, as having 8 million USA viewers as of early 2017.

In total, more than 26 million USA consumers, almost half of households, hold Prime memberships and have viewed Prime Video. Amazon estimates it attracted 1.15 million new Prime subscribers worldwide, at an average cost of United States dollars 63 per subscriber.

The documents walk through metrics for 19 of its Prime Originals shows, which are exclusive to Amazon. Additionally, the documents show what Amazon considers to be the financial logic of its strategy, and why the company is now making more commercial projects in addition to high-brow shows aimed at winning awards, according to Reuters who spoke with two people familiar with the matter.

Quoting sources, the report stated that investment in Amazon Prime has grown to $5 billion per year.

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Memberships that only offer access to Amazon Prime Video will remain at $8.99 per month. (NASDAQ:NFLX) had double the numbers at roughly 52 million USA subscribers.

But a show like Good Girls Revolt, which has been critically acclaimed due to its tackling of gender inequality, hasn't been as profitable. The first video that is streamed is marked as the content that brought in the subscriber. Members turned into paying Prime subscribers cost Amazon only $49 per new member during the first season.

The company then calculates how expensive the viewer was to acquire by dividing the show's costs by the number of first streams it had. Its first season drew a US audience half as large as that of "The Man in the High Castle", and it fell to 1.3 million viewers for its third season, according to the documents.

Amazon ended 2017 with about 60 million Prime subscribers in the U.S. Netflix ended 2017 with 54.75 million U.S. subscribers.

Reuters provides a handy graph to illustrate the direct comparison between a show's overall cost, and its cost per new subscriber. That comes out to a cost of $63 per new Prime subscriber - which is far less than the annual Prime fee of $99. In 2017, the company invested around $4.5 billion into its content budget and walked aways with the global TV rights to IP including "Lord of the Rings", which cost the company $250 million. "Amazon canceled it after one season".

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