A new study from S&P Global Market Intelligence Kagan is forecasting rapid advertising growth for Amazon’s streaming efforts.

It is projecting that by the end of 2025, Amazon will have about 128 million Prime subscribers, up from 99.6 million in 2020, and that nearly 75% of those access Prime Video content. That translates to about 90.5 million Prime Video users, of which only 5.48 million are on the ad-free tier.

That is powering rapid growth in Amazon’s ad streaming revenue. Since Amazon introduced ads on Prime Video in January 2024, its advertising revenue hit $433 million in 2024 and is forecast to grow to $806 million in 2025, according to the research. This growth is attributed to the ad-supported version reaching over 130 million U.S. consumers monthly, the researchers said.

Other key highlights include:

• Subscriber Growth: Paid US Amazon Prime subscribers are projected to exceed 128 million by the end of 2025. The pandemic initially drove subscriber growth, but this has slowed since 2023. Prime Video viewing accounts are expected to reach over 90 million by 2025, with a significant portion viewing content with ads.
• Ad Revenue Surge: Amazon introduced ads on Prime Video in January 2024, with ad revenue expected to rise from $433 million in 2024 to $806 million in 2025. This growth is attributed to the ad-supported version reaching over 130 million US consumers monthly.
• Consumer Preferences: Survey data indicates that free shipping and Prime Video access are top perks for Prime subscribers, used by over 70% of respondents. Other popular features include Amazon Music, Prime Reading, and Prime Gaming.
• Revenue and Costs: US Prime Video revenue is estimated to reach $5.64 billion in 2025, with ad revenue contributing significantly to this increase. Global programming costs for Prime Video are projected to rise to $10.56 billion in 2025, reflecting Amazon's investment in expanding live sports programming.
• Demographics: Prime Video viewers tend to be younger, living in homes with children, and from higher income brackets. This demographic trend is consistent with broader Amazon shopper profiles, where Prime subscribers are slightly younger and more likely to have children.

Amazon Prime announced this week that it is testing a new AI process for translating foreign languages for closed captioning in its programming.

The initiative, designed to “make its vast streaming library accessible to even more customers,” targets dubbing on licensed movies and series that would not have been dubbed otherwise, the company said. Starting this week, AI-aided dubbing in English and Latin American Spanish will be available initially on 12 licensed movies and series, including titles such as El Cid: La Leyenda, Mi Mamá Lora, and Long Lost.

The AI-aided pilot program will take a hybrid approach to dubbing in which localization professionals collaborate with AI to ensure quality control. “AI-aided processes like this one, which incorporate the right amount of human expertise, can enable localization for titles that would not otherwise be accessible to customers,” the company said in its blog.

“At Prime Video, we believe in improving customers’ experience with practical and useful AI innovation,” said Raf Soltanovich, VP of technology at Prime Video and Amazon MGM Studios. “AI-aided dubbing is only available on titles that do not have dubbing support, and we are eager to explore a new way to make series and movies more accessible and enjoyable.”

Using AI to translate closed captions has become among the most popular uses of AI in media production; Microsoft announced an AI-powered translator for closed captioning on its Edge browser last year and the Sinclair Broadcast Group just announced last month that it is testing AI translated subtitling in real time.

It's also being tested on NextGen TV as well. Public Media Venture Group (PMVG) announced in December that it is now providing real-time translation of closed captioning from English to Spanish on PMVG’s NextGen TV (ATSC 3.0) test bed station in Cookeville, Tennessee.

As promised when it announced its plans in September, Amazon is joining its competitors in upping the cost of its Prime streaming service, forcing subscribers to cough up an extra $2.99 to avoid ads. Up until now, the service has been a free add-on to Prime members who pay $14.99 per month or $139 per year.  

“To continue investing in compelling content and keep increasing that investment over a long period of time, starting in early 2024, Prime Video shows and movies will include limited advertisements,” the company announced last fall. “We aim to have meaningfully fewer ads than linear TV and other streaming TV providers.” 

The U.S. is being hit first but the ad-supported service will also be introduced in the U.K., Germany and Canada shortly, followed by France, Italy, Spain, Mexico, and Australia later in the year. 

The ad-supported service will now be considered the default unless Prime members decide to pay the higher fee. Amazon said it has no plans raise to the current price of Prime membership in 2024. 

Amazon is following in the footsteps of its main competitor Netflix, which rolled out its ad supported service for its subscribers in November 2022. The “Netflix Basic With Ads” plan costs $6.99 per month and the ad-free Basic plan goes for $11.99 per month—that will be increased to $15.49 per month. Last week, the streaming service announced it would retire its lowest tier subscription, making the cheapest subscription $15.49. The premium no ad service is currently priced at $22.99 per month.

Disney, which offers a variety of ad-supported bundles with (and without) Hulu, charges $7.99 for its ad supported tier or $10.99 sans ads per month.

Unlike its competitors, Amazon has much more experience and insight into digital advertising, which could give it a leg up on its competition. “Amazon has a relatively lower cost to have ads on the platform for ad buyers, as opposed to Netflix or Disney,” said Yahoo Finance Senior Reporter Alexandra Canal. “And that could potentially bring down the cost of TV ads across the board. It's also going to encourage a lot more competition.” 

As the major streaming services set their next sights on TV's holy grail—live sports—prices hikes like this could become the norm. Nevertheless, the recent spikes are raising concerns about how much more viewers are willing to pay for subscriptions in a still nascent industry trying to find a way to profitability.

Referring to Amazon Prime, “they’re offering no additional value and simply forcing ads on consumers,” says Mike Proulx, a research director at Forrester tells the Washington Post. “Consumers in effect are losing out on this move, and it’s all Amazon’s gain.” 

Ratings for Amazon Prime Video’s second season of exclusive "Thursday Night Football" (TNF) jumped 24% among total viewers over the previous season (11.86 million vs. 9.58 million), according to Nielsen. Amazon says TNF’s across-the-board viewership gains in 2023 included 13 weeks of double-digit, year-over-year gains among total viewers, as well as its second consecutive season of double-digit increases in the hard-to-reach P18-34 demographic.

Amazon said Prime Video’s TNF audience is almost seven years younger than those watching the NFL on linear networks, and nearly 14 years younger than audiences watching prime-time broadcast television during the Fall 2023 season.   

“We’re still very much at the beginning, but Thursday Night Football’s record growth in our second season is beyond encouraging as we work to super serve fans and advertisers,” said Jay Marine, vice president, Prime Video, and global head of sports. “We are building TNF on Prime into an incredibly valuable franchise, and our production and tech teams deserve a great deal of credit for the quality and innovation we have delivered to fans, and we are just getting started.”

The 2023 TNF on Prime season kicked off in September with a Vikings-Eagles matchup that averaged 15.1 million viewers, making it the most watched TNF game ever on Prime Video, as well as the most streamed NFL game in history, Amazon said. On November 30, those records were broken by a the Seahawks-Cowboys TNF game that attracted an average audience of 15.3 million viewers, and a peak audience of nearly 18 million. 

Other season highlights included the launch of a new NFL tentpole event with the inaugural Black Friday Football game, and double-digit viewership growth across all pregame and postgame shows, including TNF Tonight and TNF Nightcap, which grew +24% and +10%, respectively.     

Just as movie theaters were trying to recover the effects of pandemic closure, a cost-of-living crisis tipped the scales in favor of in-home entertainment. Studios must once again retool licensing and distribution strategies to reach consumers.

U.S. studios have doubled down on SVOD initiatives since beginning to experiment with new release opportunities during the pandemic. Disney+ did so with PVOD, allowing users to rent select movies day-and-date with their theatrical release, while HBO Max (now known as "Max"), simply made many of its high-profile theatrical releases available to stream day-and-date.

The Status Quo Long Gone
Comparing pre-pandemic and post-pandemic first window buyers reveals a stark departure from the long-established status quo. Between 2019 and 2022, the number of streaming services in the US that premiered major studio movies within one year of theatrical release doubled. The number of premieres jumped from 82 to 91, according to 3Vision.

Warner Bros. Discovery continues to be the first window home for most major studio movies in the US. Titles once limited to HBO now typically appear on its Max streaming service as well. Overall, Warner Bros. Discovery airs far fewer movies from competing studios than it did before the rise of studio SVODs, apart from standing deals such as the Warner/Disney agreement to air 20th Century movies first on HBO alongside Max in the US.

Many of the newer service owners buying major studio movies in the US are supported by their own vertical integration. While Paramount’s Showtime has long been a first window home for many high-profile indie movies, its pre-pandemic acquisition activity from major studios was limited (with Paramount rarely engaging in vertical integration). 

This strategy has changed since the launch of Paramount+, with the SVOD taking most Paramount movies in the first window in 2022. Paramount’s CEO, Bob Bakish, claimed the decision to bring "Top Gun Maverick" to Paramount+ served as a major boost to the service’s subscribers in the US and abroad.

The same is true for NBCUniversal and Peacock. The studio is now more likely to license its movies to HBO or Netflix than before the pandemic, although Universal Pictures’ recent slate has been sizeable enough to split between supporting Peacock and selling to third parties to drive more external licencing agreement revenue.

One of the biggest changes is the output of MGM. The studio that previously focused its sales to Hulu is now going either directly onto MGM+ (FKA EPIX) or Amazon Prime, following Amazon’s acquisition of MGM.

The only studio seemingly uninterested in supporting its own service is Lionsgate, undoubtedly due in no small part to its continued efforts to find a buyer for Starz. This of course will always be a more attractive proposition to prospective acquirers if Starz is not wholly reliant on its relationship with Lionsgate to find content. 

What it has allowed Lionsgate to do is adopt the traditional Sony ‘arms dealer’ approach: licensing movies to several different services, including other first window newcomers like FOX, AMC+ and The Roku Channel.

While studios have pivoted, the U.S. licensing market has yet to land firmly in a new normal. Ongoing market flux will require studios to scrutinize data, as both buyers and suppliers, to a greater extent than ever.

Vertical Integration on a Global Scale
The rollout of studio owned SVOD services has also affected the type of services buying major studio movies in the first window internationally.

In 2019, pay TV services made up 69% of major studio movie buyers. In 2022, it was only 28%.  Global SVODs such as Amazon and Netflix are now a greater share, and studio SVODs are the driving force. 2022 was the first year that they comprised the majority share of first window movie premiere buyers. Most of this was supported by Disney, which essentially went all-in on vertical integration.

Local regulations create unique dynamics in international markets. In France, for instance, any studio looking to engage in vertical integration must contend with existing legislation that prohibits movies from streaming within 36 months of theatrical release. Disney continues to licence its movies in the first window to the French pay TV service Canal+ before they can premiere on Disney+ in a later window.

Even studios without their own service are selling less to pay TV than global SVODs. While the likes of Netflix and Amazon may be acquiring less of the latest TV from third parties, they recognize the importance of big theatrical releases on their platforms. For studios like Sony, the opportunity is huge if SVODs are willing to pay a premium to acquire Sony’s biggest movies for its services across multiple international markets. In the case of MGM, the vast majority of global SVOD sales are to its new parent, Amazon.

Studio movies are more likely than ever to debut on SVOD than their traditional first window home of pay TV. The one exception is NBCUniversal. It has the highest proportion of pay TV buyers, greatly supported by the company’s own Sky group in the UK, Germany and Italy. In the instance of NBCUniversal, vertical integration is helping keep the traditional pay TV window open.

Looking back at market data since 2019, two things are immediately clear: the dramatic scale of change and its resulting complexity. Looking forward, studios will need to analyze their own data with more granularity to understand how variables per market, distribution channel, and even title could impact revenue.  

A Pragmatic Content Approach
Studios are shifting to a vertically integrated SVOD model. Although it’s happening more slowly than it did in the scripted TV genre, movies increasingly serve as banners to attract subscribers and unlock streaming revenue. As streaming profitability displaces growth-at-all-costs as a priority, we may see the current breadth of third-party buyers (both in the US and abroad) remain as it is for now.

The more sudden change that studios face is a need to rapidly, constantly refine distribution strategies. The ability to granularly analyze market, distribution channel, and title-level data is critical to doing so. Expect each studio’s approach to differ more and more from the next in this new era of movie distribution.

WASHINGTON, D.C.—The Federal Trade Commission (FTC) have filed a lawsuit against Amazon that alleges widespread abuses in the way the online retail giant handles its Amazon Prime membership program. 

Amazon has hotly disputed the charges. 

The FTC lawsuit primarily addresses Amazon’s power in the online shopping arena. But it could have longer term implications for the streaming video business given the fact that streaming video is one of the perks offered to Amazon Prime members, which total more than 200 million. 

The FTC said it is taking action against Amazon.com, Inc. for its years-long effort to enroll consumers into its Prime program without their consent while knowingly making it difficult for consumers to cancel their subscriptions to Prime.

In a complaint filed June 21 in U.S. District Court for the Western District of Washington, the FTC charges that Amazon has knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime. 

More specifically, the FTC contends that Amazon used manipulative, coercive, or deceptive user-interface designs known as “dark patterns” to trick consumers into enrolling in automatically-renewing Prime subscriptions.

Amazon also knowingly complicated the cancellation process for Prime subscribers who sought to end their membership, the FTC alleges. 

The primary purpose of its Prime cancellation process was not to enable subscribers to cancel, but to stop them, the FTC said. Amazon leadership slowed or rejected changes that would’ve made it easier for users to cancel Prime because those changes adversely affected Amazon’s bottom line. 

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” said FTC chair Lina M. Khan. “These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from “dark patterns” and other unfair or deceptive practices in digital markets.”

The complaint filed by FTC’s is significantly redacted, though the FTC has told the Court it does not find the need for ongoing secrecy compelling.  The complaint charges that Amazon used so-called “dark patterns” to cause consumers to enroll in Prime without their consent, in violation of the FTC Act, and the Restore Online Shoppers’ Confidence Act.

During Amazon’s online checkout process, consumers were faced with numerous opportunities to subscribe to Amazon Prime at $14.99/month. In many cases, the option to purchase items on Amazon without subscribing to Prime was more difficult for consumers to locate. In some cases, the button presented to consumers to complete their transaction did not clearly state that in choosing that option they were also agreeing to join Prime for a recurring subscription, the FTC alleges. 

The FTC also alleges that Amazon put in place a cancellation process designed to deter consumers from successfully unsubscribing from Prime. It contented that consumers who attempted to cancel Prime were faced with multiple steps to actually accomplish the task of cancelling, according to the complaint. 

The complaint also alleges that Amazon was aware of consumers being nonconsensually enrolled and that the company’s executives failed to take any meaningful steps to address the issues until they were aware of the FTC investigation. In the complaint, the FTC also alleges that Amazon attempted to delay and hinder the Commission’s investigation in multiple instances.

In a statement released to the New York Times, Amazon said the “claims are false on the facts and the law” and that “by design we make it clear and simple for customers to both sign up for or cancel their Prime membership.” 

The New York Times also reported that Amazon accused the F.T.C. of filing the lawsuit without advance notice, while the two sides were still in conversation about the case.

The Commission vote authorizing the staff to file the complaint was 3-0. 

Amazon is considering joining its main streaming rivals Netflix and Disney+ in launching an ad-supported version of its Amazon Prime streaming service, according to the Wall Street Journal. 

Amazon declined to respond to the WSJ’s report and sources say plans are in the early stages. According to the report, it's part of an overall strategy to find new ways to introduce advertising, including adding ads for current Prime subscribers and then soliciting an ad-free option for a fee added on to their current subscription. This, in essence, would end Amazon’s policy of providing an ad-free version of its streaming service gratis to current Amazon Prime members who currently pay $14.99 per month. (subscribers to the streaming service who are not Prime members pay $8.99 a month). 

Amazon already offers ad-free versions of Max and Paramount+ via its Prime Video Channels and includes ads in its Thursday Night Football games. It also offers the FreeVee ad-supported streaming service. Amazon says it made $9.5 billion in ad revenues in its most recent quarter. 

If implemented, the move would represent one more streaming service offering lower cost ad-supported tiers after Netflix and Disney+ launched similar services recently. As part of its efforts to improve its bottom line, Netflix also recently started its long-anticipated crackdown on password sharing,

Amazon, which has recently gone through a series of cost-cutting measures, is also under pressure due to the rising costs of its original programming. Its "Lord of the Rings: The Rings of Power" series, which launched its first season in 2022, is the most expensive TV series in history, with its first season costing an estimated $715 million to produce. 

In terms of subscriber numbers, Amazon Prime has an estimated 168 million worldwide, according to estimates from Consumer Intelligence Research Partners, second only to Netflix, which has 230.75 million. Disney + is third with nearly 162 million.  

LONDON—To the surprise of virtually no one, the majority of scripted movie and TV series programming on subscription video on demand was based on adaptations, franchises and other forms of pre-existing intellectual property (IP) in the first half of 2022, according to Ampere Analysis. 

According to Ampere’s report, “How original are SVoD Originals?” 64% of such programming was  based on characters and storylines viewers are already familiar with. Including Unscripted Originals, the share of IP-based commissions stood at 42% of new movies and First run Originals in the U.S. during the period, compared to 28% for their international commissions, reflecting the competitiveness and maturity of the groups’ native U.S. market, Ampere noted. SVoD players have increased their share of IP-based commissions in North America by seven percentage points over the last two years.

While Apple TV+ taps most heavily into pre-existing IP (53% of total new Originals in the year to end of H1 2022) as part of its high-budget Originals strategy, IP-based commissioning is generally the highest for studio-backed platforms like Paramount+ and Disney+ as they turn to internal—and primarily US-based—IP and franchises for their new commissions. But Ampere says this share is slowly decreasing for these studio platforms as they gradually increase their international footprint. For Disney+, IP-based titles represented 35% of its global new Originals output in the first half of 2022, down from over 60% in 2020.

The two leading independent SVoD players, Netflix and Amazon Prime Video, have the lowest share of IP-based projects, according to Ampere. While leading by Originals spend level and commissioning output, Netflix has the lowest share of IP-based titles at 32%, a share that is steadily on the rise in the US market. The streaming giant is primarily drawing on book adaptations as the IP base, but also increasingly in a position to tap into some of its own hit titles and franchises to develop new Originals (e.g. its Stranger Things spin-off).

Warner Bros. Discovery’s platform Discovery+ has the lowest rate of IP-based titles (19%) due to its primarily Unscripted Originals slate. Overall, the share of IP-based titles is lower for Unscripted than Scripted commissions, although an increasing proportion of Unscripted Reality and Entertainment content is drawing on pre-existing formats for remakes, spin-offs or reboots for example, Ampere concluded.

LONDON—Disney is the king of scripted TV content in North America, commissioning 181 titles so far in 2022, vastly surpassing Netflix, according to the latest research from Ampere Analysis.

Last year, Disney barely edged out Netflix, whose scripted output is around 40 so far this year, just slightly ahead of Peacock. So far Disney has ordered more new scripted content by the end of September than it took in the whole of 2021. Netflix has focused more on international with its scripted output falling by 15% in North America across the first three quarters, vs Disney’s growth of 61%.

Warner Bros. Discovery and Paramount have also cut back on its U.S. domestic output, with Warner Bros reducing its scripted outlay from 44 to 28 new series orders in the first three quarters (-30%), and Paramount reduced from 54 series orders to just 29 (-46%).

Mid-size players have shown the greatest development in North America in 2022. One example in this group is Apple, which is steadily evolving into a serious scripted player—this year to date it is the fourth largest commissioner of scripted content in North America with 32 new series ordered, making it one of the global top 10 commissioners of scripted for the first time.

Both Netflix and Disney will far outstrip the competition in terms of scripted output, Ampere said. Disney’s scripted commissions this year are up 28% compared to the end of Q3 last year to 181. Amazon has recorded the strongest growth among all platforms and surpassed the major studios’ commissioning with some 76 titles to date (+33%). As a result, WarnerMedia has dropped out of the top three scripted content commissioners ranking. Its strategy shift post-merger with Discovery means it is likely to be overtaken by Paramount and Comcast.

In Western Europe, traditionally led by public service broadcasters, France TV is currently the largest commissioner of new scripted content with 40 titles so far this year, roughly level with output at this stage last year. Netflix has risen to match this also with 40, four more titles than this time last year. 

The biggest reduction in scripted commissioning has come from the BBC, which has fallen to third having been the biggest commissioner in 2021, with a reduction in scripted output of 20 titles compared to this stage in 2021 (-37%). A change of hands is occurring between the major studios active in Europe too. Warner Bros. Discovery has reduced its scripted output in Europe by -29% to date this year (15 titles this year to 21 last), while Paramount has more than quadrupled its commissioning (27 commissions compared to 6 at this stage last year).

“With public service broadcasters increasingly pulling back due to budget constraints, Subscription Video on Demand (SVoD) platforms and studios are ramping up scripted output, said Fred Black, Research Manager at Ampere Analysis. “At the top of the tree,  Netflix is pivoting its Originals strategy even further towards international commissions as it searches for subscriber growth, allowing Disney to catapult its way to the top of the scripted content commissioning via its base in the US, leaning on that volume for global content superiority. If Disney can successfully position its global portfolio of streaming services and cable channels in a way that suits consumers, it can claim Original content supremacy over incumbent market leader Netflix.”

LONDON—No sooner than broadcasters began transmitting HD programming in earnest, it felt as if equipment manufacturers began trumpeting the benefits of 8K – 16 times the resolution of HD.

Although that’s a bit of an exaggeration, Japan’s NHK, who started the R&D work on their Super Hi-Vision system in 1995, first screened 8K video in 2005, only one year after the launch of the first HD channel in Europe. For several years a decade ago, the network demo-ed SHV on giant displays in specially-designed stands at the NAB Show and IBC.

The first public showcase of the technology was a collaboration between NHK and the BBC to transmit the opening ceremony and selected events from the London 2012 Summer Olympics to giant screens in Broadcasting House in London, Pacific Quay in Glasgow, and the National Media Museum in Bradford.

Responses to the presentation were very positive with audience members remarking on the sense of intimacy created through seeing the athletes at that size and level of detail. More than one person remarked that being close enough to read the emotion on the faces of the participants made what is usually the most boring part of the ceremony—the entrance of the athletes—into the most moving part of the entire event.

The Current State
Ten years on, where does 8K sit in the media landscape?

Firstly, it now shares the acronym UHD (Ultra High Definition) with 4K. Its approach to dynamic range has been given its own acronym HDR (High Dynamic Range) and is also applied to HD, 4K, and still photography.

It has its own industry body—the 8K Association, who have defined basic specs for what an 8K TV should offer, including: 7,680 x 4,320 pixel resolution; input frame rates of 24p, 30p, 60p; more than 600 nits peak brightness; HEVC support; and HDMI 2.1.

When the 2012 London Olympic project was undertaken, there were only three 8K cameras in the entire world. Now there are good 8K cameras available for under $7,000, and 8K TVs for under $2,000; even smartphones now boast 8K capabilities.

There have been a few 8K projects in the broadcasting world, mostly focussed on sports production, but adoption has not been huge.

In early 2020, BT Sport and Samsung screened the UK’s first public live 8K sports broadcast, with a presentation of a match between Arsenal and Olympiacos which was made available in 8K to select fans inside Arsenal’s Emirates stadium. 

This was followed by a transmission of a Premiership Rugby match sent live in 8K to selected homes. The game was produced entirely remotely allowing BT Sport to explore OB and production workflows for future live 8K broadcasts.

NHK launched BS8K, an 8K satellite television service in 2018 and produced about 200 hours of 8K video during the Summer Olympics in Tokyo.

As a Broadcast Format
The challenge facing proponents of 8K is consumer adoption. Market research firm Omdia anticipates that just 2.7 million households worldwide are expected to have an 8K TV by the end of 2026. According to the firm, shipments of 8K TVs only accounted for 0.15% of all TV shipments in 2021. The CTA forecasts 479,000 8K-capable TV sets in the US by 2023—out of an overall market of 38 million sets—that’s a market penetration of only 1.26%.

The logistics of transmission are a significant obstacle to 8K becoming a broadcast format. The HEVC 8K codec used for the Tokyo Olympics required a bitrate of 85 Mpbs.  Advances in the efficiency of the coding algorithm allowed a bitrate of 40 Mbps for an 8K trial at the 2019 French Open.

Putting these numbers in perspective: the transmission bitrate of terrestrial broadcast HD channels averages around 6 Mbps—from as low as 1.1 and bursting up to 11.0 Mbps. To deliver equivalent quality for a 4K broadcast, a bitrate of 9 Mbps is needed. 8K requires a significant leap up to 48 Mbps, which is 8 Mbps greater than the entire bitrate available in the UK’s HD multiplex, which currently carries 9 HD and two SD channels. 

In a world in which over-the-air bandwidth is scarce and the subject of intense competition for access, it is turning out to be difficult to create a business case that justifies replacing 11 channels with one to service only 1.26% of the market.

In Production
Although the uptake of 8K as a consumer format has been slow, the technology has been making inroads as a production tool. 

Panasonic sells what it calls an 8K “Region of Interest” camera that can be configured to output 4 HD video feeds that can be panned, tilted, and zoomed via software. The system allows up to eight of the cameras to be linked in a single integrated system, effectively creating 32 virtual HD camera positions.

8K LED walls are starting to replace the use of green screens in feature productions like Disney’s “The Mandalorian.” This approach allows the actors to actually see and interact with the CGI environment in real time. This approach can be simpler to light than green screen sets, easier and more flexible to shoot, and can lead to cost savings.

In the Future
In a futuristic twist, the first 8K console game for the PS5 has been released, but only the console’s processor can see it in that resolution. 

Shin’en’s “Touryst” was released for the PS5 in an 8K version last year, however PS5 doesn’t currently support 8K output for games, and has to render it internally at 8K and then downscale the output to 4K. Sony has promised to enable 8K output in a future update, but has not named a date for that to happen.

Seventeen years after its first appearance, the jury is still out on 8K as a consumer format. It could end up being a non-starter like 3DTV, or it might follow the path of other repurposed consumer products like Betamax and MiniDisc as a useful production tool.  As William Gibson wrote, “the street finds its own uses for things.”  

The most expensive TV series ever produced made its worldwide debut last night on Amazon Prime and while there wasn’t a unanimous consensus over its quality and impact (as if there ever would be), the majority of reviewers gushed over it. 

“This is TV that is made for big screens, although surely destined to be watched on smaller ones,” said The Guardian. “It is so cinematic and grand that it makes 'House of the Dragon' look as if it has been cobbled together on Minecraft.”

The first two episodes of the Tolkien tales,  a "prequel" of sorts to the original “Lord of the Rings” cinematic trilogy, revolve around the second age of Middle Earth and premiered at the same time around the globe (9 p.m. ET in the U.S.), an unusual tactic for an on-demand, nonlinear streaming service, but somehow appropriate considering its anticipated cultural impact.  

The much-hyped series, which reportedly cost more than $1 billion to produce over five seasons, cut no corners when it came to special effects, which, according to Variety, involved 20 VFX studios and 1,500 artists creating more than 9,500 visual effects. Studios and vendors involved included Industrial Light and Magic, Weta, Ncam, Blackmagic Design, ARRI and DNEG.

In its own review, Variety acknowledged the influence that that load of cash had on the series production values. 

“It may take some time yet to fully absorb the fact that Amazon literally dropped $1 billion on its 'Lord of the Rings' show, but at least you can see where the money went,” Variety said. “It’s difficult to think of a single television production not named ‘Game of Thrones’ that has ever felt quite so vast and, yes, epic. ‘The Rings of Power' doesn’t feel small compared to the movies, nor does it feel unworthy of them. We can bemoan the fact that seemingly everything has to be an expanded universe these days, but we can also be happy when they’re good.”

The New York Times was a bit more cagey, noting that the series was a bit predictable but praising its production values. 

“If the ambitious first season does not reinvent the ring, it is a breathtaking reproduction that adds a few new filigrees,” it said.

Entertainment Weekly was less charitable, calling it a "catastrophe." 

“There are ways to do a prequel, and 'The Lord of the Rings: The Rings of Power' does them all wrong,” it said. “It takes six or seven things everyone remembers from the famous movie trilogy, adds a water tank, makes nobody fun, teases mysteries that aren't mysteries, and sends the best character on a pointless detour.” 

There was also criticism over casting for Middle Earth, with some pushing back against hiring minorities (one Twitter critic even suggesting that the series was more “token” than Tolkien). A piece on NBC’s Think website pushed back against such criticisms, pointing to producers’ attempts to balance the elements of subtle racism in Tolkiens' original writings with the realities of today’s culture.

“The new Amazon Prime series, 'The Lord of the Rings: The Rings of Power,' which is based on Tolkien’s work, makes a deliberate effort to quietly confront that uncomfortable legacy through its casting choices. It’s an admirable decision, but it’s limited by the deeply ingrained ideas of racial difference and racial determinism in Tolkien’s world,” said Noah Berlatsky, cultural critic, who goes on to say that the series “does an admirable job of rejecting the animosity toward Black and Asian people found in Tolkien’s work. But like so many fantasy (and nonfantasy stories), it still ties adventure, virtue and empowerment to the righteous genocidal slaughter of some other hated race.”

Over at Rotten Tomatoes, seen as one of the most influential arbiters of media taste, there is a huge discrepancy between critics and viewers, with the overall current Tomatometer at 83% and viewer score at 37%.  On Metacritic, the series has received a middling 3 out of 5 score and iMDB rating it 6.3 out of 10.

As for ratings, it could take awhile before Amazon releases the numbers. Unlike traditional broadcasters who have to provide immediate gratification to its advertisers, streaming services are less transparent in releasing viewer numbers. 

“It’s likely that Amazon will send out a press release after the weekend touting the show’s global reach and possibly about how it sparked additional demand for Prime Video,” said The Hollywood Reporter. “It’s just as likely that any such release will contain little to no supporting data.”  

SEATTLE—Amazon Prime subscriptions has surpassed the 200 million mark, according to a recent shareholders letter. This letter is the last from Jeff Bezos before he steps down as CEO of Amazon.

Amazon Prime is the membership platform that gives users access to special deals through the Amazon website and access to the Amazon Prime Video streaming service.

Reports had Amazon Prime subscription numbers at around 150 million prior to the COVID-19 pandemic. So in the last year they have added 50 million subscribers. That is an increased growth rate, according to Yahoo Finance reporter Daniel Howley, who said it took Amazon two years to get from 100 million subscribers to 150 million.

In the ongoing streaming wars, the 200 million subscription figure puts Amazon Prime just behind Netflix, which reported it passed the 200 million subscription mark in January. Meanwhile, Disney+ has experienced major growth in its year-plus of existence, hitting 100 million subscribers in March.

Globally, there are now a reported 1 billion streaming subscriptions. 

SEATTLE—Amazon Prime Video is set for a NFL-focused Christmas week, announcing a slew of original programming and its own broadcast teams for a pair of NFL games that will be available over its Prime Video and Twitch streaming platforms.

Prime Video and Twitch will broadcast both the Minnesota Vikings vs. New Orleans Saints game on Friday, Dec. 25, and the San Francisco 49ers vs. Arizona Cardinals game on Saturday, Dec. 26.

While Fox Sports and its crew of Joe Buck, Troy Aikman, Erin Andrews and Kristina Pink are serving as the default broadcast for the Vikings-Saints game, Prime Video will offer alternate audio feeds featuring Hannah Storm and Andrea Kramer or Bucky Brooks, Daniel Jeremiah and Joy Taylor. Prime members will be able to switch audio feeds through settings on their device and by selecting their broadcast of choice.

The 49ers-Cardinals game, which was previously announced as a Prime Video exclusive except for the teams’ local markets, will be called by Andrew Catalon, James Lofton and Sherree Burruss.

Cari Champion, Chad “Ochocinco” Johnson and Von Miller are also going to be announcing a live stream of the Vikings-Saints game on Twitch, while Champion, Andrew Hawkins and Chris Long will handle the Twitch stream of the 49ers-Cardinals.

Prime Video’s broadcasts of the NFL games will also include special features like NextGen Stats and on-demand replays from X-Ray.

These games and special broadcasts are part of a week-long slate of programming that Amazon Prime Video is calling “NFL Holiday Blitz.” Programming will consist of original content airing across Prime Video, Twitch and social media starting Monday, Dec. 21, and running through the 49ers-Cardinals games on Dec. 26.

SEATTLE—Heading into a new decade, Amazon announced that its Prime subscription service, which includes access to its Amazon Prime Video platform, has surpassed the milestone of 150 million subscribers around the world.

Those numbers come from Amazon’s 2019 fourth quarter report, during which it said that more people joined Prime than ever before. It also touted that Prime members watched double the hours of original movies and TV shows on Prime Video in Q4 2019 than in 2018.

Other details revealed in Amazno’s Q4 report include Fire TV now has more than 40 million active users worldwide. During CES 2020, Amazon also announced a new edition of Fire TV with new tools, features and services that assist with integrating Fire TV into specific products, including, for the first time, automobiles. Fire TV Edition Smart TVs also expanded in India and added more content available to customers, including Disney+ and Apple TV+.

The company also highlighted its Prime Video content, which received eight Golden Globe Award nominations in January 2020, with “Fleabag” winning two. It also debuted a number of new original series and movies—“The Expanse,” “The Report”—as well as featuring popular returning ones—“The Marvelous Mrs. Maisel,” “Jack Ryan” and “The Man in the High Castle.”

For more information on Amazon’s Q4, visit the company’s website.

November 15, 2019, UK, London:Arqiva, the international satellite and media services provider, has been selected by the international television company A+E Networks EMEA to provide on-demand content for the channel’s Amazon Prime on demand service in Germany and UK.

A+E Networks® EMEA, has been an Arqiva customer for over a decade, with the existing partnership spanning playout and connectivity across Africa and the Middle East, UK DTH satellite capacity and on-premise VoD processing services across EMEA (including the UK). As part of the new contract, Arqiva will manage the content processing, packaging and delivery of A+E Networks EMEA existing archive content in both UK and Germany, from where it is currently stored on Amazon Simple Storage Service (Amazon S3) and Amazon Simple Storage Service Glacier, to Amazon Prime.

One of A+E Networks EMEA’s key requirements was for the solution to be able to process all VoD requests as close to the cloud-based archive as possible in order to minimise content movement and therefore avoid costly cloud egress into on-premise data centres. Based on its latest hybrid on-premise/cloud offering, the solution implemented by Arqiva is the first to feature a completely cloud-contained journey, where content is taken from the online archive, processed packaged and delivered to Amazon Prime. This not only ensures significant cost-savings but transcoding in the cloud using AWS Elemental MediaConvert also enables Arqiva to process more simultaneous jobs at a far quicker pace.

Another primary factor in A+E Network EMEA’s decision to select Arqiva’s fully managed solution was its ability to integrate the company’s existing Identity and Access Management resources, ensuring the security of the platform whilst allowing A+E to retain full control of its content access and operation capabilities.

Matt Westrup, VP Technology and Operations at A+E Networks EMEA, said:“In a very dynamic and competitive media environment the ability to quickly and seamlessly deliver an even broader range of A+E Networks EMEA’s premium content to our Amazon Prime audience is a real strategic advantage. A solution like this means we can effortlessly build on our broadcast heritage in a viable way.”

Alex Pannell, Commercial Director Video Channels at Arqiva, said:“This deal marks a really important milestone for Arqiva. A+E Networks Germany is the first customer to use our new cloud VoD solution and its feedback on both the platform and onboarding process has been fantastic. We’ve been working really hard to extend our broadcast products onto cloud infrastructure and have built up an extensive set of skills and experience building on AWS. We see the fact that a major multi-channel broadcaster has adopted the cloud for its content archive as clear proof this was the right strategy to pursue for the future.”

About Arqiva

Arqiva is a leading UK communications infrastructure and media services provider dedicated to connecting people wherever they are through the delivery of TV, radio, mobile and machine to machine communications.

We are an independent provider of telecom towers, with circa 8,000 active sites across Great Britain, and are also the only supplier of national terrestrial television and radio broadcasting services in the UK. Our advanced networks support the exponential growth of connected devices and the ever-increasing demand for data from smartphones to tablets, connected TVs to smart meters.

Customers include major UK and international broadcasters such as the BBC, ITV, Sky Plc., Turner Broadcasting, the independent radio groups, major telco providers – including the UK's four mobile network operators – and energy and water companies.

For more information, news and insights from Arqiva, please visit the website at: www.arqiva.com

About A+E Networks EMEA

A+E Networks EMEA is a leading global media network reaching 74m homes in more than 100 countries across UK, Europe, Africa and Middle East. Our portfolio of popular, high performing and creative brands - HISTORY®, Crime+Investigation®, Lifetime®, HISTORY2®, UK free to air BLAZE®, COSMO in Spain and dedicated VOD brands on key platforms HISTORY Play and Crime+Investigation Play - have entertained and inspired audiences for over 20 years; telling the stories that need to be told. We complement our award-winning factual and entertainment local commissions and global hit factual and drama series with innovative talent-led exclusive digital content and top-rated podcasts. We partner with 366 major operators broadcasting throughout UK, Africa, CEE, German Speaking Markets, Iberia and Italy. With offices in London, Johannesburg, Warsaw, Madrid, Munich and Rome.

DURHAM, N.H.—Nearly three out of four U.S. households subscribe to at least one video-on-demand service, such as Netflix, Amazon Prime or Hulu, compared to 64% in 2017 and 52% in 2015, according to research released today by Leichtman Research Group (LRG).

Of the 74% of SVOD households, 69% have more than one SVOD service, an increase from 51% and 38% in 2017 and 2015, respectively, the research organization said.

“Nearly three-quarters of all U.S. households have at least one SVOD service, and one-third of all adults stream an SVOD service daily, including half of all ages 18-34,” said Bruce Leichtman, LRG president and principal analyst.

The research, which is laid out in LRG’s new “Emerging Video Services 2019” report, polled 1,116 households around the country on their use of video services. The study also found:

• 64% of all adults stream an SVOD service at least monthly, and 41% stream more than one SVOD service at least monthly;
• 33% of adults stream an SVOD service daily; 29% did in 2017, and 16% in 2015;
• 51% of those 18 to 34 years old stream an SVOD service daily, compared to 34% of those 35 to 54 years old and 15% of those 55 and older;
• 27% who subscribe to Netflix agree that their subscription is shared with others outside their household, compared to 19% with Hulu and 10% with Amazon Prime; and
• 51% of adults watch video on non-TV devices, including mobile phones, home computers, tablets and eReaders daily—up from 43% in 2017 and 31% in 2014.

“With over half of all households now getting multiple SVOD services, and new streaming services on the way, it is inevitable that the number of households having and using multiple services will continue to grow,” said Leichtman. “However, with expanded options, consumers will increasingly decide which streaming services they pay for directly and which they share with others.”

More information about the “Emerging Video Services 2019” study is available online.

LONDON—At least eight out of 10 users with internet connections in the U.S. and Saudi Arabia subscribe to a subscription video on demand service, according to a recent survey from Ampere.

The survey also revealed that the growth of sVOD subscriptions (i.e. Netflix, Amazon Prime) has picked up steam after plateauing between 2016 and 2018. While Europe is still behind the U.S. in terms of number of subscriptions overall, the rate of growth for both regions is “healthy,” Ampere said.

"The growth in SVoD subscribers in both regions will come as welcome news, particularly to those looking to enter the market this year such as Disney and Apple as it shows there is still room for growth and the opportunity to take a share of the revenue," said Minal Modha, consumer research lead at Ampere Analysis.

Saudi Arabia, Australia and Denmark showed the strongest growth in sVOD subscriptions, with France and Japan being the only countries surveyed where fewer than half said they subscribed to such a service. Subscription growth has stagnated in the Netherlands and Japan, Ampere said. 

NEW ROCHELLE, N.Y.—Netflix accounts for the most time spent streaming video content by Latinx millennials, according to a new report from Horowitz Research.

The report, “FOCUS Latino: The Media Landscape 2019,” finds 34% of the time Latinx (a gender-neutral term for a person of Latin American origin) millennials spend streaming content is with Netflix. That compares to 28% of the streaming time spent by non-Hispanic millennials, the researcher said.

Among Latinx millennials, Amazon Prime Video and Hulu both follow Netflix with about 10% each, while the remaining 46% of the time this group spends streaming is done via YouTube, network sites and apps, TV provider sites and apps and others. A total of 38% of Latinx millennials with a TV identified Netflix as their “go-to” source, compared to 29% of all Hispanic TV viewers and 20% of viewers overall, the research organization said.

“Netflix has transformed the media landscape for Latinx millennial audiences by providing access to the innovative, culturally resonant and differentiated content they crave—in English, in Spanish and even bilingual—that many other mainstream media companies have been slow to lean into,” said Adriana Waterston, SVP of Insights and Strategy for Horowitz Research.

Latinx millennials find Netflix original content as well as well-branded content from major studios, mainstream broadcast and cable networks and Spanish-language networks, such as Telemundo, attractive, it said.

The research also examined Latinx millennial attitudes about Netflix content. Fifty-two percent of respondents from this group said they find it very relatable when a TV show or movie features characters who are bilingual or bicultural. Fifty-eight percent reported wishing there were more such content.

A total of 73% agreed Netflix does a good job offering content that appeals to people like themselves—a figure higher than any other streaming service tested, Horowitz Research said.

However, Latinx millennials share a frustration of other millennials with the ability to find new content. Nearly 40% of Latinx millennial streams said they feel that the “amount of content available today is overwhelming” and are finding it “harder and harder to find new shows to watch.”

The research also revealed an Achilles’ heel for Netflix. Forty-five percent of Latinx millennial Netflix users and 52% of non-Hispanic millennials users said they would consider cancelling their subscriptions if major networks like NBC and others pulled their content from the streaming service.

More information is available on the Horowitz Research website.

LONDON—The mega media mergers of Disney and Fox and Comcast and Sky have bolstered the two companies’ content holdings and positioned them to compete effectively with online video providers, such as Netflix and Amazon Prime, according to a new analysis from media analyst firm Ampere Analysis.

Following the mergers, two of every $10 spent on content worldwide and four of every $10 in the United States will be accounted for by Comcast/Sky and Disney/Fox, according to the firm.

Together, the two merged companies will account for $43 billion spent on content this year—with Disney/Fox spending $22 billion on originated and acquired content and Comcast/Sky spending $21 billion.

While online video platforms, such as Netflix and Amazon Prime, continue to be content juggernauts –with Netflix on track to spend $8 billion on content this year, the mergers of these traditional content sources have reshuffled the deck when it comes to market power.

“Prior to the recent mergers, Netflix was on course to catch –and overtake—the top Hollywood studios by content spend,” says Daniel Gadner, analyst at Ampere Analysis. “However, in light of the two new combined entities, Netflix would now need to triple spend to achieve this feat.”

The mergers strengthen to position of both Disney/Fox and Comcast/Sky in the global market and protects them against the rising power of online video, he adds. By executing the mergers, both have increased their libraries of original content, which they can exploit as part of their direct-to-consumer strategies.

Disney already has indicated it will go direct to consumer and pull the plug on licensing content to Netflix. The addition of Fox will make the offering even stronger, says Gadher.

For independent producers, the consolidation will mean less competition for rights, which “inevitably [will] impact the indie sector’s ability to negotiate favorable deals,” he adds.

Netflix and Amazon Prime are the most popular OTT/streaming services, according to media research firm Parks Associates. Hulu, HBO Now and Starz round out the top 5.

The top 10 services are:

1. Netflix

2. Prime Video Users (Amazon Prime)

3. Hulu (SVOD)

4. HBO Now

5. Starz

6. MLB.TV

7. Showtime

8. CBS All Acess

9. Sling TV

10. DIRECTV Now

“Which company is the leading OTT video subscription service remains a topic of debate,” said Brett Sappington, Senior Director of Research, Parks Associates. “According to our estimates, Amazon has more Prime Members than Netflix has subscribers. However, when you consider only those Prime Members that use Prime Video, Netflix is the largest. Hulu remains the third largest but continues to grow its subscriber base.”

With pay-TV subscribers continuing to cut the cord, alternatives like so-called “skinny bundles”--OTT services that offer a smaller, more select lineup of channels--are becoming more popular, as represented by Sling TV and DIRECTV Now in the top 10. Similar services include Hulu with Live TV, YouTube TV, and PlayStation Vue. Online pay TV has been one of the fastest growing segments in the OTT video space, with aggressive marketing by all, according to Parks.

“HBO, Starz, Showtime, and CBS All Access demonstrate the powerful attractiveness of original content through series like Game of Thrones and Star Trek: Discovery,” Sappington said. “This pattern suggests new services such as WarnerMedia’s DC Universe and the forthcoming streaming service from Disney could achieve success quickly.”

The top subscription sports OTT video services are MLB.TV, WWE Network, and ESPN+. MLB.TV continues to lead the sports OTT subscription category, benefiting from its long tenure as a streaming service and popularity among dedicated baseball fans. ESPN+ is a newcomer to the OTT video marketplace but recently announced that it had exceeded 1 million subscribers.

Parks Associates’ OTT Video Market Tracker tracks the content offerings, business strategies, and subscription numbers for OTT services in North America. Additional data from these services:

• OTT video subscription penetration has reached 64% of U.S. broadband households. Over two-thirds of these households subscribe only to one of the top three services, Netflix, Prime Video, or Hulu.
• 36% of broadband households subscribe to two or more OTT video services.
• The online pay-TV audience is similar to the OTT audience—they are younger and quicker to adopt new technologies when compared to traditional pay-TV households.
• Over the past three years, OTT churn rates have gradually fallen each year from 31% of OTT subscriptions cancelled each year in 2015 to 28% in 2018.

HERTFORDSHIRE, UK--Global consumer spending on entertainment content—including TV, video, music and games—will reach $439 billion by 2021, according to a new report from From Futuresource Consulting. The trend, outlined in the U.K. research firm's “Global Entertainment Content Outlook” is fueled by the use of smartphones, and represents a 17 percent increase over 2017 spending levels.

Subscription Video on Demand (SVoD) services, such as Netflix, Amazon Prime Video and Hulu, are rapidly dominating the home video entertainment sector, including DVD, Blu-ray, VoD, SVoD, and EST (Electronic Sell-Through). While this sector was just 13% of consumer home video spending in 2013, by the end of 2017, SVoD alone comprised almost half of the $42 billion spent worldwide.

Global SVoD subscription spending, estimated at $19 billion in 2017, is expected to rise at a compound annual growth rate (CAGR) of 15% between 2017 and 2021, when it will account for 70 percent of total home video spending, largely due to households taking multiple services.

[Read: The Top 10 Tech Trends For 2018: Juniper Research]

Yet, SVoD still pales when compared to PayTV, which is a $200 billion global market, with U.S. spending alone accounting for half. The Futuresource report identifies bundling PayTV services with broadband/telephony, the early availability of premium content, and access to exclusive fare like sports as key factors driving its appeal.

For consumers that want to bundle their own TV content, services like Hulu, YouTube, Sony PlayStation, DirecTV and Xfinity had sold 4.8 million PayTV Lite subscriptions in the U.S. by 2017, and the trend continues.

Since offering compelling content is key to driving consumer spending on entertainment video services, the report indicates that mergers and acquisitions (M&A) are on the rise, and cites Comcast’s bid for Sky and Disney’s move to acquire 21 Century Fox as evidence that global media conglomerates are seeking to broaden their audience and market reach. And, all combined, the FAANG (Facebook, Apple, Amazon, Netflix and Google) companies are expected to spend $20 billion on video content in 2018 to gain a competitive edge. 

PLANO, TEXAS—Netflix, Hulu and Amazon Prime will spend $10 billion annually on original content by 2022 –a threefold increase from what they spend today, according to a new report from The Diffusion Group (TDG).

The report, “Big-3 SVOD and the Original Content Arms Race – Analysis & Forecasts,” finds original content is an important factor in retaining subscribers. Twenty-one percent of Netflix subscribers say original content is “absolutely critical” to their choice to continue subscribing, and 41 percent say originals are a “very important” factor, it says.

"The data is unequivocal," says Brad Schlachter, TDG senior advisor and author of the new report, "though it varies among the Big-3 SVOD providers."

While not every original series is a blockbuster, those that are a hit, such as Hulu’s Handmaid’s Tale or Netflix’ House of Cards, “can change the fortunes of a company,” he adds.

The report points out that other companies, such as Apple and Facebook, are looking to repeat this type of success with their own original content, and Disney, which has pulled its most compelling content from the libraries of Hulu, Netflix and Amazon Prime, promises to be a strong competitor in the SVOD space.

To find out more about the report, visit the TDG website.

SEATTLE—New research shows Amazon Prime is set to overtake cable TV in terms of popularity in the United States.

According to estimates from Morningstar, nearly 79 million U.S. households now have an Amazon Prime membership, up from around 66 million at the end of last year.

Morningstar suggests more U.S. households may have an Amazon Prime subscription than a pay-TV subscription as soon as next year.

Amazon has begun offering discounts to households in receipt of government assistance and has also introduced a monthly payment plan to lure people who don’t want to pay the $99 annual fee.

This story originally appeared on TVT's sister publication TVB Europe.