Amazon’s original shows drew 5 million people to Prime: Internal documents

Executive producers Isa Dick Hackett, David W. Zucker, actors Alexa Davalos, Luke Kleintank, Rupert Evans, Cary-Hiroyuki Tagawa in addition to Rufus Sewell attend Amazon Original Series 'The Man from the High Castle' Special Screening Event in addition to Q&A on July 10, 2015 in San Diego, California.

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Executive producers Isa Dick Hackett, David W. Zucker, actors Alexa Davalos, Luke Kleintank, Rupert Evans, Cary-Hiroyuki Tagawa in addition to Rufus Sewell attend Amazon Original Series ‘The Man from the High Castle’ Special Screening Event in addition to Q&A on July 10, 2015 in San Diego, California.

Amazon.com Inc’s top television shows drew more than 5 million people worldwide to its Prime shopping club by early 2017, according to company documents, revealing for the 1st time how the retailer’s bet on original video is actually paying off.

The documents also show which Amazon’s U.S. audience for all video programming on Prime, including films in addition to TV shows the item licenses by different companies, was about 26 million customers. Amazon has never released figures for its total audience.

The internal documents compare metrics which have never been reported for 19 shows exclusive to Amazon: their cost, their viewership in addition to the number of people they helped lure to Prime. Known as Prime Originals, the shows account for as much as a quarter of what analysts estimate to be total Prime sign-ups by late 2014 to early 2017, the period covered by the documents.

Core to Amazon’s strategy is actually the use of video to convert viewers into shoppers. Fans access Amazon’s lineup by joining Prime, a club which includes two-day package delivery in addition to different perks, for an annual fee.

The company declined to comment on the documents seen by Reuters. nevertheless Chief Executive Jeff Bezos has been upfront about the company’s use of entertainment to drive merchandise sales. the entire world’s biggest online retailer launched Amazon Studios in 2010 to develop original programs which have since grabbed awards in addition to Hollywood buzz.

“When we win a Golden Globe, the item helps us sell more shoes,” Bezos said at a 2016 technology conference near Los Angeles. He said film in addition to TV customers renew their subscriptions “at higher rates, in addition to they convert by free trials at higher rates” than members who do not stream videos on Prime.

Video has grown to be one of Amazon’s biggest expenditures at $5 billion per year for original in addition to licensed content, two people familiar with the matter said. The company has never disclosed how many subscribers the item won as a result, doing the item hard for investors to evaluate its programming decisions.

The internal documents show what Amazon considers to be the financial logic of its strategy, in addition to why the company is actually right now doing more commercial projects in addition to high-brow shows aimed at winning awards, the people said.

For example, the first season of the well-known drama “The Man from the High Castle,” an alternate history depicting Germany as the victor of World War Two, had 8 million U.S. viewers as of early 2017, according to the documents. The program cost $72 million in production in addition to marketing in addition to attracted 1.15 million brand new subscribers worldwide based on Amazon’s accounting, the documents showed.

Amazon calculated which the show drew brand new Prime members at an average cost of $63 per subscriber.

which is actually far less than the $99 which subscribers pay from the United States for Prime; the company charges similar fees abroad. Prime members also buy more goods by Amazon than non-members, Bezos has said, further boosting profit.

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