Prime continues to be a long term investment for Amazon.

in amazon •  2 years ago 

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200 million is how many Amazon Prime users exist.
153 million of that is American users.

Comparing that

212 million is Netflix global user count.
114 million users are in the US.

137 million are the total Disney+ users.
85 million are in the US.

77 million is the amount of HBO Max subscribers.
No official numbers released, but US members estimated to be 55-65% of that.

Amazon Prime while not exactly being a streaming service, due to the core function being free shipping is the only US based streaming group to have over 75% of subscribers be from just the US.

Netflix being almost under 50% and Disney/HBO Max expecting to be closer to that as they expand.

Writing this, it’s been one year since Amazon bought MGM Studios for 8 billion dollars.

MGM being the owners of.

James Bond
Legally Blonde
Rocky
Pink Panther
Handmaid’s Tale
Stargate
RoboCop

Looking at the list, by far the strongest is James Bond.

Bond also being one of the only major media franchises which makes more money overseas over the U.S.

Skyfall made 1.1 billion dollars globally.

304 million of that was in the US.
804 million was overseas box office.
161 million was in the UK.

Just to show why that’s a big deal.

The US box office was 11 billion in 2019.
The UK was 1.2 billion.

The US averages at any given year 8-10x as much box office spending as the UK, but the Bond movies sometimes come close to the US.

Why this is big for Amazon.

Amazon Prime is 5% of total revenue for Amazon.

It’s also been a product as one that sometimes isn’t very profitable, due to increased shipping costs.

MGM was an example of a bigger plan by Amazon to make more content appealing to international content in a hope of having Amazon subscriptions grow pass the US.

The other point is Amazon still as a shipping company can grow a lot globally.

68% of Amazon’s revenue is the US.

Also, for the 32% outside the US, most of that is other services such as AWS, video prime and some logistics services outside the core business.

This puts expanding Prime as a long term investment, where having more international users, will make it easier to eventually scale into more sales in those places.

This is also why they are investing a reported 500 million into their Lord of the Rings series.

JRR Tolkien was from South Africa under British control and was a UK citizen.

Amazon has 15 million prime users in the UK and is shipping there heavily.

Bond & LOTR could be part of a plan for Europe, which involves the UK.

Writing this, it seems like from numbers, Amazon will continue buying or investing in large franchises for UK/European appeal.

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