Amazon Shoots for Netflix-Level Success with Original TV Shows
Recent data from Nielsen show that traditional television watching has steadily declined since 2011 for all age groups except 65 and older as pay-TV has its market share eaten away by online streaming services like Netflix (NASDAQ:NFLX) and Hulu LLC. Amazon.com Inc. (NASDAQ:AMZN) is also pouring money into online TV streaming by investing in programming rights and even developing its own original shows.
Amazon’s streaming video service comes with its Amazon Prime membership, which, for $79 per year, gives members free two-day shipping. While Netflix outsources the production of its original series to studios like Lions Gate (NYSE:LGF), Amazon created Amazon Studios to produce its own shows like the upcoming comedy Betas.
According to a report from Bloomberg, Amazon is spending between $10 million and $50 million to produce the show, a comedy about a group of twenty-somethings in Silicon Valley trying to create a social media site to compete with Facebook (NASDAQ:FB). Amazon Studios is also working on another comedy, called Alpha House, that will star Bill Murray and John Goodman as it races to get Prime Instant Video to catch up with Netflix.