Amazon(US:AMZN) Business Insider·2025-06-25 21:01Core Insights - Amazon is positioning Prime Video as a comprehensive entertainment hub to compete with Netflix and YouTube by promoting rival streaming services through its "channels" program [1][6] Group 1: Business Strategy - Amazon's channels program has seen a rise in sign-ups, accounting for 25% of major US subscription streamer sign-ups in Q1, up from 22% two years ago [3] - The company aims to enhance engagement on its platform, as Prime Video currently captures only about 3.5% of TV watch time, trailing behind competitors [6] - Amazon's goal is to make Prime Video profitable by 2025, with revenue cuts from subscriptions varying by partner [6] Group 2: Partnerships and Collaborations - Amazon's channels business has successfully re-engaged HBO Max and onboarded Apple TV+ for the first time, although it still seeks partnerships with other major players like Comcast's Peacock and Disney [5] - Antenna's data indicates that 90% of Prime Video Channels sign-ups would not have occurred without the service being available on Prime Video [10] - Partners have reported that Amazon has become more generous in sharing subscriber data and providing promotional opportunities [14] Group 3: Market Competition - Netflix is also striving to become the default TV viewing platform, recently announcing a deal with France's TF1 [7] - YouTube is attempting to develop a channels business similar to Amazon's, but industry executives believe it has significant ground to cover [7] Group 4: Content Strategy and Spending - Amazon's channels program has raised concerns within MGM Studios regarding the long-term commitment to producing original content, especially as other services gain prominence [18] - The company has been scrutinizing its entertainment spending, leading to layoffs and a shift in focus towards live sports and licensed content [19] - Prime Video's ad business has been bolstered by sports programming, with expectations for ad revenue to exceed $66 billion in 2024 [20]