Amazon appears to be ready to raise the stakes in the battle for video content. MediaPost reports that Amazon is expected to invest about $5 billion in video content this year, an increase from a little more than $4 billion last year.
The report cites estimates from JPMorgan’s Doug Anmuth, who noted in a research report on Internet companies that video helps Amazon with retention and with conversions to its Prime service.
The report notes that Amazon’s Prime Video service “is ad-free, although Amazon did have ads on its broadcast of NFL ‘Thursday Night Football,’ and allows ads on channels offered through its Amazon Channels initiative.”
The report notes that Netflix is expected to spend up to $8 billion on video content this year.