Upon being approached about leading Amazon Prime Video, Mike Hopkins shared a common perspective held within the Hollywood industry. He viewed the streaming service primarily as an added benefit for subscribers of Amazon’s two-day delivery service.

However, Amazon founder Jeff Bezos had significantly more ambitious goals for the service that provides movies, television shows, and original programming.

“After meeting with Jeff, it was very clear that he really saw this as an opportunity to build a media company,” said Hopkins, A seasoned entertainment industry professional with extensive experience at Fox Networks, Sony Pictures, and Hulu, who has in the past four years successfully guided Prime Video’s strategic trajectory, propelling it into the mainstream Hollywood landscape.

A-Listers

Under Hopkins’ leadership, Prime Video is undergoing a strategic transformation, evolving into a comprehensive media enterprise. This transformation encompasses the establishment of an in-house film studio and theatrical distribution arm, the development of an expanding portfolio of original movies and series featuring renowned actors, the acquisition of professional sports rights, and the integration of advertising opportunities.

"We ... like the progress of Prime Video," Amazon CEO Andy Jassy told investors this month.

Prime Video's accumulation of star talent and live sports positions it to secure a larger portion of the projected $28.75 billion in digital advertising revenue that Emarketer anticipates will be allocated to streaming this year, as advertisers reduce their spending on traditional television.

According to Morgan Stanley, advertisements on Prime Video could yield $3.3 billion in revenue this year, with the potential to more than double to $7.1 billion within the next two years.

However, Prime Video still trails behind industry frontrunners YouTube and Netflix in terms of streaming television viewership in the U.S. for June, as reported by Nielsen.

Although an increasing number of its programs have entered Nielsen's Top 10 list of the most-streamed original series in 2023, Netflix continues to hold a commanding lead.

Nevertheless, Amazon's goal of establishing a comprehensive entertainment platform that caters to diverse preferences is becoming increasingly evident, according to insights from nine agents, advertising buyers, and executives within the entertainment sector.

Sports, Stars and Ads

Amazon Prime Video has secured an exclusive agreement with the NBA, marking a significant milestone as the first streaming service to achieve such a partnership. This collaboration will result in the creation of year-round sports programming, which, by the year 2025, will encompass a diverse range of sports, including NFL football, NASCAR car racing, the WNBA Finals, and Champions League soccer.

In a move that poses a potential challenge to traditional film studios, Amazon intends to substantially increase its theatrical releases from the current six this year to a projected 16 by the year 2027. This information is being exclusively reported by Reuters for the first time.

It is important to note that this figure excludes movies specifically produced for non-U.S. audiences, as well as the five or six films typically acquired from other studios and the approximate dozen movies planned for direct distribution on Prime Video. This expanded output would position Amazon as a formidable competitor to Universal Pictures, renowned as Hollywood’s most prolific studio.