Prime Video Channels are additional video subscriptions – from premium cable networks like HBO and Starz to niche networks like Yoga Anytime Channel – that Prime members can subscribe to. The service makes Amazon the platform on which you can put together your own bundle of Internet TV.
In a Friday note, BMO analyst Daniel Salmon estimated that channels could be responsible for large parts of the total subscribers to these channels.
Nearly half of Starz's direct subscribers may come from Amazon, the statement said. Starz, which originally launched a standalone subscription to channels before launching its own app a few months later, receives an estimated 47 percent of its subscribers from Amazon.
According to the BMO, HBO receives about 35 percent of its subscribers there. Show time? An estimated 37 percent. (Disclosure: Showtime is owned by CBS, the parent company of CNET.)
The magnitude of the channel business suggests another way in which Amazon seeks to establish itself as a consumer-friendly gateway to a large corporation. Amazons Maketplace has set up a system that allows third-party vendors to send their articles through Amazon's gigantic delivery infrastructure, and their digital Alexa helper serves as a platform for outside parties to create voice-centric interactions. With each of these efforts, Amazon will be the showcase for everything you need in your life.
Amazon declined to comment. Starz, HBO, and Showtime did not respond immediately to news that was looking for a comment.
According to estimates by the BMO, Channels generated sales of approximately $ 1.7 billion this year. The BMO estimates that it will be $ 1 billion more than last year and is expected to rise to $ 2.6 billion in 2019 and $ 3.6 billion in 2020. However, Amazon pays the programmers an average of 70 percent of that money back. According to BMO estimates, Amazon will pay about $ 1.2 billion to video product owners this year.