The double streaming giant that drives Amazon's global ecosystem

Amazon's main video: A strategic player in the streaming wars

In the increasingly competitive streaming landscape, Amazon Prime Video fails with a unique approach that brings the creation of content with broader business objectives. In a recently carried out interview with Julia Boorstin from CNBC, Mike Hopkins, head of Amazon Prime Video and MGM Studios, outlined the company's characteristic strategy in the developing media ecosystem.

“We really want to push ahead with Prime membership. We want to keep customers and a reason why people want to subscribe to Prime,” said Hopkins. In contrast to pure play streaming services, Prime Video fulfills a double purpose: to improve the value of Amazon Prime and at the same time create an independent entertainment company that includes rentals, purchases and advertising.

This double approach explains the apparently counterintuitive investment by Amazon in theater publications despite the post -pandemic battles of the box office. “We see a great opportunity for the theater business itself,” said Hopkins. “The selection of the films has decreased in recent years. We actually contribute to the fact that some of these options are attributed to cinema goers.”

According to Hopkins, theater publications create several sources of income: cash register returns, digital rentals and purchases (in which Amazon has a “large market share”) and finally exclusive streaming on Prime video. This window strategy maximizes the value of Amazon's content investments on various platforms.

Sport has become another important pillar in Amazon's content strategy, with significant investments in NFL on Thursday evening -football, Nascar and recently the NBA rights. “Must television television will promote sports.

Interestingly, Prime Video serves as an entry point for Amazon's ecosystem in international markets. “All over the world, Prime Video in many of these countries is the first entry point for Amazon,” said Hopkins. “Our job there in Brazil, Mexico, India and some other locals is to actually get members to a promote and then present them to shopping.”

The advertising company introduced in January 2023 quickly became an important revenue driver. “We have more people who watch video advertising in first -class videos than each of our competitors,” said Hopkins and emphasized the “Full Funnel approach” from Amazon, with the customer trips from video ads to purchases on Amazon.com.

When discussing the contents investment strategy, Hopkins emphasized the need for equilibrium between broad attraction and niche programming. For important investments such as “The Lord of the Rings: The Machrings”, he explained that such shows “have to translate worldwide and achieve many people”. Amazon produces around 240 local originals in different languages ​​worldwide and complements these tent poles.

With a view to the future, Hopkin's artificial intelligence sees both the creation and discovery of content. “Every team of Amazon develops tools with AI,” he presented improvements in content recommendations and even almost instantane synchronization and subtitles of international content with realistic lip synchronization.

With regard to the future of the James Bond franchise, which Amazon acquired through his MGM purchase, Hopkin's excitement expressed excitement while recognizing the legacy: “It is one of these characters that took filmmaking for 60 years. A lot of respect, above all, what we will do.”

With the streaming competition, Amazon's strategy can use Prime Video to improve its wider ecosystem and at the same time build an independent entertainment company to offer companies advantages with which pure-play streaming services cannot match.

Source: CNBC interview with Mike Hopkins, head of Amazon Prime Video & MGM Studios