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Amazon Prime Video Channels is Nearly $2B Business

According to a report in Variety, BMO Capital Markets estimates that Amazon Prime Video Channels will gross $1.7 billion in revenue for the retail giant, up 150% from last year.

It has been reported that Amazon keeps 30% of that, meaning they will net more than $500 million from their streaming partners. Some of those include services include HBO, Showtime, CBS All Access,Hallmark Movies Now, Britbox, Curiosity Stream, and Sundance Now.

Earlier this year, TDG estimated that nearly 53% of HBO’s direct-to-consumer subscribers came from Amazon Channels.

The key driver of the service is that it removes nearly all friction for the customer to subscribe to streaming services. Customers can sign-up to the channels on an à la carte basis using their Amazon account. They can and watch on either Amazon or the streaming service’s own interface.

With their Prime Video service continuing to grow after reaching nearly 40 million subscribers this year, BMO expects that their Channels business could reach $3.6 billion by 2020