Amazon Spent $1.7 Bn On Making Original Music And Video Content In Q1 2019

Amazon Spent $1.7 Bn On Making Original Music And Video Content In Q1 2019

SUMMARY

Amazon also announced the net sales of $59.7 Bn in Q1 2019

Net sales include $4.3 Bn from subscription services

Amazon also introduced one-day prime delivery

Global ecommerce giant Amazon has announced in its quarterly financial filings that it has spent  $1.7 Bn on video and music content in the first quarter.

Amazon said in a SEC filing, that the total capitalized costs of video, which is primarily released content, and music in the first quarter was $4.2 Bn, against $3.8 Bn in Q4 2018.

It further explained that total video and music expense was $1.7 Bn in Q1 2019, against $1.5 Bn of Q1 2018.  This includes licensing and production costs associated with content offered within Amazon Prime memberships, and costs associated with digital subscriptions and sold or rented content.

In the regulatory filings, Amazon also announced the net sales of $59.7 Bn in Q1 2019, against $51.0 Bn of Q1 2018.

Net sales include subscription services of $4.3 Bn of Q1 2019 Amazon received as annual and monthly fees associated with Amazon Prime memberships, as well as audiobook, digital video, e-book, digital music, and other non-AWS subscription services.

During the company’s earnings call, Dave Fildes, head of Investor Relations said, “I mean, we’re continuing to invest meaningfully in digital video. It’s an area we’re very excited about. Lots of very popular critically acclaimed shows have obviously come out, things like Homecoming, Jack Ryan, more recently Hanna or Guava Island and some great titles. So I think look for us to continue to invest there.”

The company also claimed that they have had more people sign up for Prime in 2018 than any other year before. Also, the prime program engagement including order shipping, hours watched on video, hours listened to music, all are said to be trending in the right direction.

Amazon has been competing heavily in the content segment with players such as Netflix and Spotify. In India, specifically, the company also has other challengers such as Gaana, JioSaavn, Hotstar among others.

Poised to be a market worth $5 Bn by 2023, the Indian OTT segment is embroiled in an ongoing debate around the regulation of the OTT segment with  discussions between TRAI, internet lobbies and associations such as the Internet and Mobile Association of India (IAMAI), the Broadband India Forum, and the Asia Internet Coalition.

According to a Billboard report Amazon has entered into discussions with record companies to launch a free, ad-supported music service, which could be launched soon. It’s not yet clear how the free service will coexist with Amazon Prime Music, the company’s paid music streaming offering.

On the music front, a KPMG report from 2015 said India’s recorded music business is set to nearly double to INR 18.9 Bn ($300 Mn) by the end of this year.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Amazon Spent $1.7 Bn On Making Original Music And Video Content In Q1 2019-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Amazon Spent $1.7 Bn On Making Original Music And Video Content In Q1 2019-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Amazon Spent $1.7 Bn On Making Original Music And Video Content In Q1 2019-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Amazon Spent $1.7 Bn On Making Original Music And Video Content In Q1 2019-Inc42 Media
Amazon Spent $1.7 Bn On Making Original Music And Video Content In Q1 2019-Inc42 Media
You’re in Good company