Netflix Inc. (NASDAQ:NFLX) and Amazon.com Inc. (NASDAQ:AMZN) are expected to lead in beefing the process of coming up with a service that can truly replace cables.
Heavy spending to actualize online video services
According to a chart provided by Statista, Netflix and Amazon emerge as the greatest spenders in parties seeking an alternative for cable in provision of online video services. Late last year, Netflix had stated they are planning to spend a total of $6 billion only on content in the year 2017. ESPN is the only one expected to spend more with $7 billion around that time.
Analyst JP Morgan, last week, stated that Amazon is planned to spend about $4.5 billion only on video itself. Amazon has boasted success with original shows such as ‘The man in the High Castle’ as well as ‘The Grand Tour’. The company’s is know for its aggressive spending which gives a clear indication of its great ambition and desire as much of a destination choice for high quality shows as HBO (FRA:HBO) and Netflix.
A plus for Amazon
Amazon’s activities always tie it back to its main e-commerce business platform. This may result to the company’s video investments leading customers to buy goods from its platform.
The $4.5 billion spending on video content during this year, narrows down the spending gap itself and Netflix.
Netflix have been mailing DVDs until a decade ago. It still remains the market giant as far as spending on live streaming is concerned. Amazon, however, is in its hot pursuit and might dethrone it soon enough. Amazon has been reported to almost doubling the spending on videos each passing year as noted in the past three years.
HBO is also a notable rival. This is even though there is not much information available on HBO’s 2017 projected budget. It cannot be ignored. The CEO of Time Warner, Jeff Bewkes classified the budget as a “couple of billion dollars”.
The figures are a good indication that Amazon is very ambitious with the video streaming project. It is one of the company’s perks of $99 annually Prime subscriptions. Last week, the company reportedly inked a $50 million deal as the NFL partner to stream 10 Thursday Night Football.