Amazon is going up against Netflix and betting big on streaming.
Amazon founder Jeff Bezos has revealed that the company last year spent $1.3 billion on its online streaming service Prime Instant Video, investing in programmes such as Mozart in the Jungle and Golden Globe-winning Transparent. Amazon revealed recently that it has also signed up Woody Allen to direct an exclusive series for Prime Instant Video, the director’s first effort in the TV format.
The outlay helped the online shopping giant increase members of its subscription service Prime, which includes the video service as part of the package, by 53 per cent in 2014. But the investment also meant that the perennially loss-making business remained in the red for the year, making a loss of $241 million.
The news came as Amazon revealed strong Christmas sales, with a 15 per cent rise in revenue to $29.6 billion during the three months to the end of the year. Amazon said 5.5 million products were sold in the UK on Black Friday, an average of 64 items per second. Popular items included theKindle Fire HDX and the Dolce Gusto Mini Me Coffee Capsule Machine.
Amazon shares jumped 12 per cent in afterhours trading.Reuse content