What Exactly is Amazon Studios in 2023 and How Does It Impact You As an Amazon Seller?
As an experienced Amazon seller, I‘m constantly analyzing how Amazon‘s moves in other spaces like video streaming impact my ecommerce business. So what exactly is Amazon Studios, and how does this movie/TV studio affect the Amazon marketplace in 2023?
Amazon Studios is the retail giant‘s in-house production arm developing original entertainment content for streaming on Amazon Prime Video. This content is a key driver for Prime subscriptions, which in turn creates more loyal Amazon shopping customers.
In this detailed guide, I‘ll cover everything a seller needs to know about Amazon Studios – how it makes money, accepts projects, pays creators, influences Prime membership, and more. I‘ll also provide my insider take on how this studio benefits and threatens sellers like you. Let‘s dive in!
A Brief History of Amazon Studios
First, a quick background on how Amazon Studios started…
Amazon Studios launched publicly in 2010 with the goal of soliciting TV and movie scripts from any writer on the internet. The idea was to crowdsource quality content based on reviews and data. For several years, Amazon Studios accepted open submissions of specs scripts and pilot concepts.
However, by 2018 it was clear this approach failed to consistently produce hits. Out of thousands of submissions, almost nothing was greenlit beyond a couple pilots.
So Amazon Studios pivoted to operate more like a traditional Hollywood studio – developing projects in-house and relying on agents to surface hot scripts.
Despite some growing pains, Amazon Studios now produces both award-winning and commercially successful original content including:
- The Marvelous Mrs. Maisel – 20 Emmy wins
- Manchester by the Sea – Academy Award Best Original Screenplay
- Jack Ryan – Viewed by over 70 million households
- The Boys – One of Prime Video‘s biggest hits
For sellers, the growth of Prime Video through studio productions is consequential thanks to its ties to Prime member shopping habits…
How Amazon Studios Impacts Your Business as a Seller
So why should you care about some Hollywood studio if you just sell products on Amazon?
Here are 3 key ways Amazon Studios impacts your ecommerce business:
More Prime subscriptions – Amazon Studios creates must-see original content that convinces people to sign up for Prime. Over 200 million are already members.
Increased loyalty – Viewers invested in Amazon‘s TV shows and movies are less likely to cancel Prime – they want ongoing access.
More shopping activity – Prime members convert at a much higher rate and spend more on Amazon than non-members.
In summary, Amazon Studios gives people another reason to pay for Prime, which leads to more engaged shoppers on Amazon buying your products.
Consider that Prime members spend an average of $1400/year on Amazon compared to $600 for non-members. That‘s over 2X higher spending!
Now you understand why Amazon is happy to operate Amazon Studios at a loss – the halo effect on Prime is well worth it.
Next let‘s analyze how Amazon Studios makes money…
How Does Amazon Studios Make Money?
Unlike traditional studios trying to profit from ticket sales or licensing, Amazon Studios‘ core business model is using great content to acquire more Prime subscribers.
Once people are hooked on a new show they can‘t get elsewhere, they‘ll pay to keep their Prime membership active month after month. Over time, the recurring fees add up to big money.
According to Amazon‘s 2021 financials, video and music content accounted for $30+ billion in costs. But with revenue of over $50 billion from subscription services like Prime, Amazon still comes out ahead.
Now that Amazon owns MGM Studios, it can also benefit from revenue opportunities like:
- Theatrical releases
- Licensing to other streamers
- Franchise rights like James Bond
But make no mistake, the end goal is fueling Prime subscriptions. Viewership and profit from individual titles are secondary.
In your business, this means a larger audience of engaged Prime subscribers actively shopping on Amazon.
Next I‘ll explain how Amazon Studios chooses which movies and shows to produce…
How Writers Get Projects Greenlit by Amazon Studios
In the early days, Amazon Studios accepted open script submissions from anyone. But after failing to produce more than a couple pilots, this model was scrapped in 2018.
So how do writers get projects greenlit in 2023 and beyond? Here are the main options:
IMDbPro – Writers can post scripts on this profile platform owned by Amazon to try generating buzz.
Prime Video Direct – Self-publish your finished videos here to earn royalties, potentially leading to a development deal.
Producers & Agents – Well-connected industry pros are now the main way unknown writers can get their work to Amazon executives.
While not as egalitarian, this closed system does weed out low-quality projects. For sellers, it means the risk of spending on poor shows decreases.
That said, I hope Amazon finds ways to keep sourcing fresh voices to pair with experienced producers. Diverse perspectives will help Prime Video compete in an increasingly crowded market.
What Writers Earned During the Open Submission Era
When Amazon Studios accepted unsolicited scripts from 2010 to 2018, they made some lofty claims about writer compensation:
- $55,000 for TV comedy/kids pilot scripts
- $70,000 for TV drama pilots
- $200,000 for feature film scripts
Plus a $400,000 box office bonus if the movie made over $60 million.
However, it seems like these amounts were more theoretical than actual. Only one children‘s series was produced from the open submissions.
Today, deals and script fees are negotiated privately by agents, similar to other studios. Less amateur screenwriters breaking in perhaps, but also less risk of Amazon overpaying unproven creators.
How Do You Access Amazon Studios as a Seller or Content Creator?
Sellers looking to engage with Amazon Studios content or creators have a few options:
IMDb Pro – Connect with writers and producers here. Could be an avenue for sponsorship opportunities.
Amazon Studios Portal – Login with your Amazon credentials to view scripts and post reviews. Useful for monitoring upcoming projects.
Prime Video Direct – Upload videos here and earn royalties when Prime members stream them. Great distribution platform.
I recommend media-savvy sellers focus energy on Prime Video Direct or IMDbPro. Align your brand with Amazon Studios‘ upcoming movies and shows for maximum visibility.
For example, sponsor relevant video content or use IMDb‘s data to target complementary products to Studios releases. Leverage these connections with creators to expand your reach.
Amazon Studios Production Facilities and Stats
The home base of Amazon Studios is located within the historic Culver Studios at 9336 W Washington Blvd, Culver City, CA 90232.
Some key facts about the Amazon Studios production facilities:
Founded November 2010
280,000 square feet of office and stages
Original 1918 film lot opened by silent movie mogul Thomas Ince
Films like Gone with the Wind shot on the lot
700+ employees total on site
225 Amazon Studios employees work here
Having a dedicated L.A. studio and executive team signals Amazon‘s serious move into original video content creation. Sellers should pay attention to any major expansions or hardware announcements – more production capacity means more Prime Video content in the works.
Expert Predictions – What‘s Next for Amazon Studios?
As an experienced ecommerce professional, I expect Amazon Studios to ramp up productions over the next 3-5 years.
My predictions based on Amazon‘s history and current trajectory:
Big budget releases – Amazon will greenlight larger films with A-list stars as it did with the new Chris Pratt thriller The Tomorrow War. Look for more blockbuster-level projects.
Expanded genres – Beyond sci-fi and dramas, I anticipate Amazon expanding into genres like romance, comedy, and reality TV to attract a wider audience.
Killer app show – Amazon will pour resources into developing the next Game of Thrones or Stranger Things-level pop culture phenomenon. This will be a major Prime subscription and retention driver.
Deep integration – Product placement and cross-promotion with Amazon shopping will increase. Expect subtle brand synergies between Prime Video content and Amazon‘s ecommerce business.
Overall, Amazon Studios is poised for rapid growth in the next few years. Sellers should track new releases and find creative ways to capitalize on Amazon‘s original entertainment properties.
The more Prime subscriptions and buzz Amazon Studios generates, the better for your sales. Align your brand with relevant shows and films to share in their success.
The Bottom Line – Amazon Studios Drives More Valuable Prime Customers
Here‘s the key takeaway on Amazon Studios for sellers:
High-quality original movies and shows entice consumers to join Prime or maintain their memberships. This growing pool of engaged subscribers in turn shops more actively on Amazon and converts at a higher rate.
So while you may not work in Hollywood, pay attention to Amazon Studios. More hits on Prime Video translate to more sales and less churn for your ecommerce business.
I hope this detailed overview clarifies exactly how Amazon Studios operates in 2023 and why it matters for sellers like you. Let me know if you have any other questions!
