Amazon attracts 5 mln new customers with Prime Originals

Amazon CEO Jeff Bezos has been upfront about the company's use of entertainment to drive merchandise sales

Amazon CEO Jeff Bezos has been upfront about the company's use of entertainment to drive merchandise sales

An audience of tens of millions. For example, Reuters reports that The Man in the High Castlehad 8 million U.S. viewers in early 2017, while bringing in "1.15 million new subscribers worldwide based on Amazon's accounting".

Few companies can capitalize on video the way that Amazon can, with its massive retail distribution infrastructure and access to consumer wallets.

The company has been notoriously secretive about any kind of data about its Amazon Prime Video service, but now documents leaked to Reuters reveal some numbers for the first time.

Amazon Originals are a big driver.

Despite the fact that other companies can't match Amazon's scale, many can still benefit from the draw that video provides.

Amazon Originals are expensive, too. The company upped its spending for 2018 by almost $1 billion.

People can watch The Man in the High Castle and then turn around and buy the book by Philip K. Dick, as well as other books by the sci-fi author. However, the e-commerce giant does lead over Hulu roughly has around 17 million users. Amazon Studios spent $107 million on production and marketing costs for season two of Man in the High Castle, which works out to $11 million per episode. But it had a total audience of 8 million viewers in the US alone. So with those figures it makes the rumours that The Grand Tour has already been scheduled for cancellation that bit more unlikely. The internal documents revealed cost-benefit metrics for 19 exclusive Amazon Prime shows. Its third season was drawing just 1.3 million viewers. Its marquee series Transparent, about a transgender father and his family, won eight Primetime Emmy Awards and created the buzz Amazon wanted to attract top producers and actors. But it lags in viewers: At its height, the show was only half as big as "Man in the High Castle" in the US and it fell to 1.3 million viewers for its third season. "Good Girls Revolt", a story on gender inequality within a NY newsroom was a complete and utter failure from a business standpoint. Instead, they want the people who subscribe for the goal of watching the movies and TV shows to also shop Amazon and use the free 2-day shipping to buy things. Because of that, the company's decisions on which of its original series to renew and cancel can seem arbitrary.

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Digital perks drive Prime adoption. The documents, which were obtained by Reuters, also show that Amazon's U.S. audience for video programming was approximately 26m customers.

One of the more popular Prime Original's is "The Man in the High Castle". Second, Reuters says those documents don't show how Amazon.com Inc.

A source tells Reuters, however, that Amazon "credits a specific show for luring someone to start or extend a Prime subscription if that program is the first one a customer streams after signing up".

How many Prime subscribers actually use Prime Video?

Rival Netflix Inc had twice that many USA subscribers in the first quarter of 2017.

"The Lord of the Rings" is coming. If it is wooing you with fantastic content, such as the $200-250 million on Lord of the Rings, it is only to convince you to keep returning to it to make purchases. It does not disclose how many were active viewers.

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