Investing.com -- Amazon (NASDAQ:AMZN)’s Prime Video is reportedly shifting its strategic focus towards live sports broadcasting, moving away from its traditional reliance on original television shows and movies. The move is part of an effort to meet corporate profit targets, according to a report from The Information published on Friday.
The tech giant’s decision marks a significant turn as it seeks new revenue generation avenues. Live sports events, with their real-time viewership, present lucrative opportunities for targeted ad placements. This potential has prompted streaming companies to secure more live content deals to enhance advertising revenues.
Amazon CEO Andy Jassy has set a goal to make Prime Video profitable by the end of 2025. This strategic shift is integral to achieving that objective, as per the report, which cites two sources familiar with the company’s plans.
The company has been investing heavily in sports content, spending approximately $3 billion annually for broadcasting rights to major leagues such as the NBA and NFL. In July, Amazon teamed up with Walt Disney (NYSE:DIS)’s ESPN and Comcast (NASDAQ:CMCSA)’s NBCUniversal to secure the rights to broadcast NBA games in an 11-year deal valued at $77 billion. Amazon also began incorporating ads within its Prime Video platform last year.
Competitor Netflix (NASDAQ:NFLX) is also making moves into the live sports arena, securing deals for Christmas Day NFL games, a high-profile boxing match between Jake Paul and Mike Tyson, and live WWE RAW events.
Following a 2022 planning meeting, Amazon’s entertainment team has reportedly been commissioning fewer film and TV projects. The report cites eight producers with ongoing or recent projects with the company. For 2024, Amazon’s annual budget for original and licensed movies, TV shows, and live sports was estimated to be around $7 billion.
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