Quote:
Originally Posted by JoHunt
I know this is worldwide and membership costs can vary by country, but US $100 is probably the average.
100 million x US $100 = US $10 billion per year. Even if 90% goes to operating expenses (which is probably on the very high side), what's left is not bad at the end of the day.
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Plus the mythical doubling of spending of Prime subscribers vs non-subscribers that means (theoretically) that Prime members buy as much as 200M non-subscribers. And those purchases are steered towards Prime-elegible products.
It is a pretty good deal for consumers because of the perks, but it is very good for Amazon's bottom line. Particularly because it allowed Amazon to ramp up its Prime Video library into a top tier streaming service both on the financial and viewer side: Netflix has around 120M+ subscribers worldwide but with 100M+ subscribers Prime Video isn't far behind.
Easy to see how the two have the legacy media spooked. (Fox selling to Disney, WB selling to AT&T/DirecTV, Comcast trying to buy Sky. I suspect NBC/Universal will try buy control of Hulu.)
Hint: Amazon doing LORD OF THE RINGS as a tv series.
Also: something like half the top selling books at Amazon are APub titles.
It's not retail alone Prime is impacting.