One of the biggest growth stories in streaming video has been the quiet success of Amazon Channels, MediaPost reports.
“According to BMO Capital Markets, Amazon Channels will generate $1.7 billion in 2018, up from an estimated $700 million in 2017. The company expects Channels to hit $3.6 billion in revenue in 2020,” MediaPost reports.
The Amazon Channels platform serves as a middleman for streaming services such as HBO Now, CBS All Access and Starz.
“It is available in the U.S., Japan, U.K. and Germany, with other countries expected to launch in the coming years,” MediaPost notes. “It has more than 150 streaming networks available for subscription, with a mix of large services that may be household names, to niche offerings focusing on targeted content.”
Amazon takes a cut of the subscription revenue when a user signs up for a service through Amazon Channels.
“BMO Capital Markets estimates Amazon Channels is responsible for driving between 25% to 45% of OTT subscribers for some of these services,” MediaPost reports, adding: “The power of Amazon Channels to drive subscribers is making it one of the most powerful players in the emerging streaming service boom.”