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When an Amazon TV show wins a Golden Globe, Amazon sells more shoes
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Over the past two decades, Amazon has grown to become the largest ecommerce player in the world. But to think of it as just an online retailer would be underestimating its presence across multiple other services and markets.
Within this, Amazon Video is fast emerging as a key pillar of Amazon’s overall business as it uses video to increase Prime memberships and improve user stickiness on the Amazon platform.
Over the past two decades, global e-commerce giant, Amazon has focused on owning entire market verticals with books being the first market that it dominated. However, to think of Amazon as just an online retailer, would be underestimating the depth and breadth of its presence across multiple markets. Amazon not only sells products, it also produces television shows and movies; publishes books; runs an online advertising business; operates the world’s largest streaming video-game platform; manufactures a growing array of products, and more recently is even foraying into healthcare.
Within this, Amazon Video emerged in the past five years as traditional video ecosystems began transitioning to digital formats. As part of Amazon’s Prime bundle, it also supports customer stickiness and increased customer retail expenditure. In short, Amazon has been focusing on offering a frictionless integration of entertainment and ecommerce with its focus on video content. Amazon no longer wants you just to buy from its website; it wants you to buy Amazon content in an Amazon format on an Amazon device. In this report, we consider Amazon’s video strategy and the implications for different segments of the video market.