Amazon is Losing Millions on Prime Video, But It Doesn’t Care

Amazon Prime is one of the better deals out there. When you look at it, for just $99 a year you get free 2-day shipping, music, ebooks, photo storage, TV shows, and movies. You even get access to exclusive discounts and Amazon original shows and movies.

However, this all costs money, and according to The Motley Fool, Amazon lost about $700 million on Amazon Prime Video in 2016.

But Amazon does not care that it is losing money. Amazon has made it clear that it sees Amazon Video as a way to get more people to use and buy stuff on Amazon. The additional features, such as music, books, photo storage, and, of course, the TV shows and movies, are all ways to get people to pick Amazon over other sites and stores.

This effort to attract new subscribers and shoppers seems to be paying off as Amazon is reported to have at least 66 million Amazon Prime members. That is 66 million people paying for Prime and likely making Amazon their first place to shop.

So next time you look at Amazon Prime Video remember you really are getting more than you pay for. Amazon is just hoping you also will buy some stuff, like a Fire TV, as you use the service.

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