Amazon spent $ 11 billion on video and music content last year

Amazon spent $ 11 billion on content for its video streaming and music services last year, the company revealed Thursday in its annual report, the latest sign of the company’s willingness to invest heavily in consumer entertainment. Prime members.

The $ 11 billion spent on content in 2020 is a big increase from the previous year, when Amazon spent $ 7.8 billion, according to the report. Amazon defines video and music expenses as all licensing and production costs, as well as costs associated with digital subscriptions and content sold or rented.

Amazon has sought to grab the attention of consumers with a sea of ​​rival video and music streaming offers from Netflix, Disney, Apple, Spotify, and more. Over the past few years, it has built up a solid library of original and licensed videos, music and podcasts, including through the acquisition of podcasting start-up Wondery in December.

It rapidly increased spending on video and music content in 2020, with consumers spending more time indoors staring at screens amid the coronavirus pandemic. Amazon also pursued more expensive movie projects as its profile in Hollywood increased.

The company has long been willing to invest heavily in video and music content as a strategy to bolster Prime memberships. On Thursday, CEO Jeff Bezos announced in his annual letter to shareholders that Amazon now has 200 million Prime subscribers, up from 150 million at the start of 2020. Amazon is integrating its music and video offerings into the Prime subscription plan , which costs $ 119 per year and includes other perks like free two-day shipping.