News


Amazon pledges to continue to increase video budget

Amazon has said it will continue to invest in video content and will incorporate it into its financial guidance each quarter as it goes through the year.

Amazon Instant VideoSpeaking on the company’s fourth quarter earnings call, chief financial officer Brian Olsavsky said that the company was benefiting from its video investments.

“We do like the results we’re seeing with engagement on customers, their buying habits, their engagement with the video content, their use of it on devices. We will continue to increase our budget in that area,” he said.

During the company’s Q3 results call in October he said Amazon would increase its investment in video during 2018, tailoring its content decisions based on what “resonates with Prime members”.

At the time he said that Amazon’s video business makes good financial sense as Prime members who watch video “also spend more on Amazon”. However, he didn’t put a specific figure on its content spend.

In Q4 Amazon said that net sales increased 38% to US$60.5 billion while operating income increased 69% to US$2.1 billion.