Amazon.com, Inc.

(NASDAQ Global Select)
Bullish +75

Amazon Prime Video beats Apple TV - Yahoo Finance

πŸ“ˆ Amazon CEO Andy Jassy confirmed Prime Video is now profitable in its own right with a revenue run rate in the tens of billions of dollars.

πŸ‘₯ The ad-supported tier of Prime Video reaches over 315 million monthly active users globally, including more than 130 million in the US.

🎬 Major hit shows like 'Fallout' and 'The Boys' are driving momentum for the streaming service alongside exclusive live sports rights.

πŸ’° Users can upgrade to an ad-free experience for $4.99 per month, adding a direct revenue stream to the video business.

🏈 Amazon secured its best start ever for Thursday Night Football in 2026 and added major leagues like UEFA Champions League and NBA.

πŸ›‘οΈ Prime Video serves as a strategic loss leader that successfully increases member loyalty without requiring a separate subscription fee.

πŸ“Š The service leverages free two-day shipping benefits to retain customers who might otherwise pay for a standalone video subscription.

Bullish Signals
  • Amazon CEO Andy Jassy stated Prime Video has emerged as a significant business with a revenue run rate in the tens of billions of dollars and is now profitable.
  • The ad-supported tier reaches more than 315 million monthly active users globally, demonstrating strong market penetration and user engagement.
  • Major hit shows like 'Fallout' and 'The Boys' are generating significant momentum for the platform, attracting a large subscriber base.
  • Amazon secured its best start ever for Thursday Night Football in 2026, expanding its live sports portfolio with UEFA Champions League and NBA rights.
  • The service successfully leverages Prime Video to make members more loyal, effectively using content as a retention tool for the broader Prime ecosystem.
Full Analysis
Amazon CEO Andy Jassy emphasized during the company's third-quarter earnings call that Prime Video has evolved from a potential vanity project into a significant, profitable business unit. The service leverages its integration with Amazon Prime to drive member loyalty, though it does not charge a separate subscription fee for the core video content. Prime Video currently boasts an ad-supported tier reaching over 315 million monthly active users globally, including more than 130 million in the United States. Users can upgrade to an ad-free experience for $4.99 per month, contributing to the service's revenue run rate which Jassy described as being in the tens of billions of dollars. The platform is driving growth through hit shows like 'Fallout' and 'The Boys,' alongside major live sports rights including Thursday Night Football and UEFA Champions League soccer. Jassy noted that these initiatives have generated significant momentum, positioning Prime Video as a standalone profitable business rather than just a loss leader for the broader Prime ecosystem. Despite Amazon not breaking out specific financials or subscriber counts separately in its reports, the strategic focus remains on using video content to enhance customer retention and loyalty. This approach contrasts with competitors like Apple TV+, which operates as a distinct premium subscription service but continues to report significant annual losses despite high award wins.