Amazon Investments Prime Original Content Push

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July 24 (Bloomberg) -- Bloomberg’s Jon Erlichman looks at the money Amazon is plunging into creating original video programming and how it ties into investments in fulfilment centers and research and development. He speaks on “In The Loop.”

To big television studios.

Jon erlichman caught up with the man leading amazon's studio.

He joins us from los angeles.

How much is amazon spending on this concept?

They are shy when it comes to sharing the actual numbers, but they are spending a substantial amount per series, and it does not come cheap when you want to get into the business of hollywood, alix.

You are right, every amazon earnings report we talk about the profitability problem for amazon because of the spending on fulfillment centers, and conversations in the past were as they rolled out new devices, selling those that cost, but this is changing to being a story, not unlike netflix, of spending millions of dollars per episode for these different shows.

Roy price, who is running amazon studios, set the record straight recently on their budget.

Here's what he has to say.

People seem to have the idea that these shows have lower budgets that maybe the shows that they enjoy on tv now, or the cast was taking significant pay hits to work on amazon shows or these shows.

I can assure you that is deathly not the case.

The priority for us, as i say, is creating shows that our quality, that people will care about, and shows that are going to last.

I think we have stepped up to really do that.

So, between devices, fulfillment centers, and original shows, all of it, in a lot of ways, is about keeping you in the world that is amazon and continuing to shop with amazon.

Actors taking a pay cut, please.

Is there any talk about spinning out the film and television unit ? some people were wondering because they rolled into their prime two-day membership program, why not make it like a netflix and then get people to upgrade to the full-time prime program.

He poured cold water on that idea.

I think we are focused on making prime fantastic, which i think we are doing pretty successfully, so we are morse focused on that instead of subdividing it -- more focus on that instead of subdividing it.

I think you are right.

We will hear more about prime.

They have been highlighted.

What about content -- there was speculation that it amazon buys time warner, perhaps they could buy electronic arts to help original content?

The name will grow.

We saw microsoft pulled the plug on their xbox original series

This text has been automatically generated. It may not be 100% accurate.


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