Analyzing the Reasons for Prime Video’s Better Performance

Abstract

In 2021, Amazon successfully finalized its significant acquisition of Metro-Goldwyn-Mayer (MGM). This development strengthened Prime Video's position in the fiercely competitive sector of streaming video-on-demand (SVOD). This study aimed to investigate the factors that contributed to Prime Video's improved performance following its acquisition of MGM. The investigation determined that Prime Video effectively enhanced its market performance through the implementation of advertising services, regular updates to its original content library, and a vigorous expansion of its market reach. This paper provides concrete recommendations based on the future trajectory of the industry. Firstly, it suggests enhancing the cost-effectiveness of services to appeal to a wider range of users. Secondly, it recommends continuing to invest in original content and regular updates to maintain user engagement. Lastly, it proposes bolstering the development of the brand ecosystem by integrating multiple services within Amazon, thereby enhancing the user experience and fostering brand loyalty. This research not only addresses the existing scholarly deficiency but also serves as a valuable resource for guiding the future progress of other firms.