Amazon has flown somewhat under the radar in the streaming wars, having many fewer high-profile series and feature films than other high flyers such as Netflix, Disney, Warner Bros, and even Apple.
In addition, Amazon has not previously had access to any of Hollywood’s largest movie and entertainment libraries, though it is hopeful it can use the extensive MGM library after the company’s $8.5B acquisition of the studio is finalized.
This week, a shiny new jewel was unveiled in Amazon’s entertainment crown when “The Lord of the Rings: The Rings of Power” debuted on Amazon Prime Video. It has been widely reported that company founder Jeff Bezos was personally involved, going back to 2014, in obtaining the rights to the “Lord of the Rings” franchise after observing HBO’s success with “Game of Thrones.”
Amazon spent more than $700M on this series alone, including the rights to air it on Prime Video for the first season. This eye-popping sum sets a new benchmark and highlights the enormous costs required to break through in streaming.
Amazon stands alone in being able to absorb hundreds of millions of dollars in losses to create a splash since it can leverage huge profits from other businesses in its consumer empire. However, all other studios and streamers will strain to justify investments of a similar magnitude.
See also: Amazon’s ‘Lord of the Rings: The Rings of Power’ Draws More Than 25 Million Viewers (Wall Street Journal)