For the first time, Amazon is revealing earnings from its Prime membership program as well as other subscription services, in a 77-page document. Up until now, the company has been tight-lipped on such numbers, leaving investors to wonder how these important services are faring. The last time Amazon revealed numbers, in April 2015, it detailed the profitability of its Amazon Web Services, resulting in analysts and investors bumping the company’s value upwards. Since then, shares in Amazon have more than doubled. Continue reading Amazon: Prime, Other Subscription Services Earn $6.4 Billion

To help create a unified digital market, the European Union just agreed to so-called portability, which will allow subscribers to access their online services as they travel from one EU country to another. When the EU introduced its Digital Single Market (DSM) in May 2015, Europe’s film/TV industry, which licenses its content territory-by-territory, promptly opposed it, especially the provision that would allow people in the EU to buy content on other countries’ digital platforms. The Motion Picture Association of America shares these concerns. Continue reading EU’s Digital Single Market Strategy Concerns Film/TV Industry

Amazon has typically chosen revenue growth and investments over profits, but in Q4, profit rose 55 percent to $749 million, while revenue increased 22 percent to $43.7 billion. The company has enjoyed seven consecutive profitable quarters. While brick-and-mortar sales reported disappointing sales during the holiday season, Amazon won an estimated 42 percent of total holiday online spending growth during that quarter. The company is about to invest heavily, having pledged to create 100,000 full-time jobs by mid-2018. Continue reading Enjoying Healthy Profits, Amazon Turns to Investment, Growth

Nvidia’s new Shield TV features 4K HDR streaming and improved gaming capabilities — and now, many of the new hardware benefits are also available for free on the original Shield TV via an over-the-air software update. Users can access 4K HDR streaming from Netflix and Amazon Prime Video, and 4K support from Google Play offerings and additional sources. The update also features “support for upgraded GeForce Now game streaming, and the new Nvidia Games app which centralizes all the various gaming endpoints,” reports TechCrunch. To add Google Assistant interaction, users will need to purchase the new $60 Shield Controller with built-in microphone. Continue reading Nvidia Updates Shield TV to Offer 4K HDR Streaming and More

About a year after debuting its original movies division, Amazon became the first Internet company to garner an Academy Award nomination for best picture, with “Manchester by the Sea.” In addition to best picture, “Manchester by the Sea” earned five other nominations for writer and director Kenneth Lonergan, lead actor Casey Affleck, supporting actress Michelle Williams and supporting actor Lucas Hedges. Amazon also holds U.S. distribution rights to foreign language nominee “The Salesman,” from Iran. Continue reading Amazon Is First Internet Company with Best Picture Oscar Nom

Amazon is launching Anime Strike, its first on-demand subscription service for Amazon Channels, available in the U.S. to Prime members for $4.99/month. The channel will offer more than 1,000 ad-free series episodes and movies, including same-day-broadcasts from Japanese series including “Scum’s Wish” (“Kuzu no Honkai”) and “Blue Exorcist: Kyoto Saga” (“Ao No Exorcist: Kyoto Fujouou-hen”). Also featured will be older anime titles including “Paprika,” “Tokyo Godfathers” and “Magical Girl Lyrical Nanoha StrikerS.” Continue reading Anime Strike: Amazon’s First Branded Subscription Channel

Streaming TV is now mainstream, with even cable and satellite subscribers paying for services such as Netflix or Amazon Prime. Television networks also make their fare available for streaming via apps or smart TVs. But the typical streaming service model — whereby the subscriber doesn’t pay for a fat bundle of disparate channels and a DVR — is changing. Dish Network’s Sling TV and AT&T’s DirecTV Now, nominally streaming services, offer bundles of TV networks delivered in a linear fashion, just like cable or satellite. Journalist/author Walt Mossberg is concerned by the change.  Continue reading Mossberg Questions the Direction of Streaming TV Services

Apple plans to focus on a new business in original TV shows and movies, say sources. The content would be available to subscribers of Apple Music, the company’s $10/month streaming music service, which continues to be an underdog to Spotify. In the wake of slowing iPhone and iPad sales, Apple has been casting about for a new source of revenue; recently, it has been in discussions with Hollywood producers to buy the rights to scripted TV programs and is trying to hire studio/network marketers to promote the content. Continue reading Apple Makes an Original Content Play to Beef Up Apple Music

The Digital Entertainment Group reports that, for the first time, subscription streaming has surpassed disc sales, further evidence that Hollywood may need to reconsider traditional windows for theatrical distribution. While total home entertainment spending increased 1.36 percent, “the $5.4 billion in disc sales fell well short of the $6.2 billion tabulated from SVOD providers like Netflix,” notes Variety. Subscription streaming jumped nearly 23 percent in 2016 (although figures do not include Amazon Prime), while disc sales dropped almost 10 percent. In another first, “spending on electronic-sell-through, or EST, which totaled just over $2 billion, was edged by VOD by just $67 million.” Continue reading DEG Report: Streaming Exceeds Disc Sales in Industry First

Amazon experienced its “best ever” holiday shopping season, with its voice-controlled Echo and Echo Dot smart speakers leading sales, followed by the Fire TV Stick and $50 Amazon Fire tablet. Sales of the Alexa-enabled devices were nine times higher than sales during the previous year’s holiday season and the company had trouble keeping them in stock. Amazon Prime members reportedly purchased more than one billion items over the holiday season. The online retailer said its customers purchased enough 4K TVs to scale Mount Everest more than nine times. Among the top sellers included Samsung’s 32-inch smart LED TV and Avera’s 32-inch LED TV. Continue reading Holiday Shoppers Buy Record Number of Products on Amazon

Facebook plans to fund original productions and license original video content from media companies and digital celebrities for its platform. To be led by Facebook head of global strategy Ricky Van Veen, the new initiative is still in its nascent stages; a spokesperson only says the company is reaching out to many potential partners. Chief executive Mark Zuckerberg has steadfastly insisted Facebook is not a media company, but given this decisive move towards content, that will be a difficult position to maintain. Continue reading Facebook Pursues Funding, Licensing Original Video Content

More Americans are watching TV on-demand and over-the-top. Although some services such as Netflix and Amazon Prime are ad-free, the number of OTT ads is growing. Pivotal Research reports that smart TV viewing skyrocketed 65 percent over the last year, accounting now for 8.1 percent of TV viewing for the 18-to-49 demographic. In line with that finding, Innovid, which serves ads to TV apps and web video outlets, says the share of ads now placed on connected TVs has quadrupled in the same time frame. Continue reading As Viewing on Smart TVs Increases, Advertisers Gain Interest

Prime video members can access premium cable content from HBO and Cinemax now that Amazon has introduced the channels to its add-on packs in Amazon Channels, which now features more than 70 add-ons available to subscribers willing to pay more each month. “HBO is an additional $14.99 per month, and Cinemax is $9.99 monthly, with both offering 30-day free trials,” notes TechCrunch (HBO’s standalone HBO Now also runs $15/month). “The HBO add-on provides access to HBO’s current hits and past hit shows and limited series, as well as their current licensed movies, and news shows. Likewise Cinemax provides access to their original shows, as well as movies.” Continue reading Amazon Expands its A La Carte Offerings with HBO, Cinemax

Amazon, looking into the possibility of streaming live sports, has been in conversations with the National Basketball Association, Major League Baseball and the National Football League, as well as soccer, lacrosse and surfing leagues, say sources. The company’s idea would be to create a premium sports package that would be made available via its Amazon Prime, with the goal of bringing new members to the $99 per year membership program. Amazon could also market a “skinny bundle” of live sports channels. Continue reading Amazon Reportedly Scouting for Live Sports Rights for Prime

Warner Bros. announced its plan to purchase the rest of gamer-centric YouTube network Machinima, which the studio first invested in two years ago. The digital media company will join the recently created Warner Bros. Digital Networks arm to help the studio develop new digital and over-the-top offerings. “With Machinima now wholly under its control, Warner Bros. hopes to tap deeper into the network’s loyal audience of young consumers who devour video game-related programming — especially content related to Warner’s own franchises including DC,” reports the Los Angeles Times. Machinima also “provides video programming for services including Playstation Vue, Amazon Prime and the CW network.” Continue reading Warner Bros. Acquires Machinima for Digital Networks Division