Amazon’s second quarter was a big hit, and the company will now be spending a lot of money that could give it an edge against Netflix in video streaming.
The company said this week that it will double its video content spend in the second half of this year, and also triple its spending on original content.
This big news was a part of the company’s better-than-expected second-quarter earnings, where chief financial officer Brian Olsavsky said Amazon was “very happy” with free trial conversions and with the renewal rates on Amazon Video. Amazon Video is the company’s $8.99 standalone streaming offering.
Olsavsky said in the earnings call, “We know the customers love it. Critics, apparently, do too.” Amazon Studios had received 16 Emmy nominations for Original Series.
While there was no figure given on how much Amazon would be spending on video content, they did say that they have continued to add content since the $1.3 billion the company spent in 2014.
According to Nielsen, Netflix is currently the most popular streaming service and 45 percent of all U.S. TV households hold a Netflix subscription. Nielsen said that 22 percent have Amazon Prime.
Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.