Amazon Puts a Revenue Scale on Prime Video's Profits
Amazon CEO Andy Jassy said on the company's October 29, 2026 quarterly earnings call that Prime Video has a revenue run rate in the tens of billions of dollars and is now profitable in its own right. TechCrunch He had told investors in May that the service was profitable, so the October disclosure is the first time the company has attached a revenue scale to that profitability.
A run rate annualizes a recent period, projecting a quarter or month across a full year. It is not the same measure as reported revenue for a quarter or fiscal year, so readers comparing it with segment figures should keep that distinction in view.
The call also covered the consolidated quarter. Amazon reported third-quarter net sales of $201.9 billion, up 12% from $180.2 billion in the third quarter of 2025, and third-quarter operating income of $28.1 billion. Amazon The company forecast fourth-quarter revenue of $240 billion to $247 billion. Reuters
Amazon Web Services, the cloud arm that rents computing capacity to other businesses, exited the quarter at a $184 billion annualized revenue run rate. Jassy projected AWS revenue growth above 40% in both 2027 and 2028. Yahoo Finance Separately, Amazon has said it expects its Trainium chips, its custom AI accelerators, to save tens of billions of dollars per year in capital expenditure once deployed at scale. Amazon In the same earnings materials, Amazon said it "may" have two trillion-dollar businesses in five to 10 years. The Verge
On the content side, Amazon MGM Studios, which Amazon acquired for $8.5 billion, has brought in more than $1.2 billion in global box office so far in 2026. Project Hail Mary, the Ryan Gosling film based on Andy Weir's novel, opened in theaters in March and has grossed an estimated $684 million worldwide. It became the studio's highest-grossing release. By Amazon's first-quarter results in April, it had grossed nearly $615 million. Deadline Verity was also a box office hit for the studio. Project Hail Mary is streaming on Prime Video, and Jassy called it "an amazing movie." Amazon
Jassy named Carrie, The Summer I Turned Pretty, The Boys, Off Campus, Fallout and Reacher as the service's TV hits. Season 4 of Reacher drew 66 million viewers globally in its first 28 days. Reacher Season 5 is filming, and the series has been picked up for a sixth season. Thursday Night Football's first six games of the 2026 season averaged 17.7 million viewers, up 16% from last year. The second season of NBA on Prime attracted over 2 million viewers.
Those audience figures are the inputs to the run-rate claim, and they are where streaming economics become hard to separate from retail economics. Live sports and tentpole series carry high fixed costs, while the advertising and subscription revenue they generate depends on how far the bundle reaches. Jassy's framing places Prime Video's profitability on the same footing as Amazon's other businesses, rather than treating it as a loss leader attached to shipping.
In my view, the more useful question for technology professionals is how much of that scale depends on the same infrastructure that AWS and Trainium are meant to make cheaper. Encoding video, recommending titles, targeting ads and searching content all consume compute, so a stated capital expenditure saving at that layer would feed directly into the margin of a video business. Amazon has not tied the two together, so that link remains an inference rather than a disclosed result.
The broader context here is that Amazon now describes a single corporate narrative in which retail, cloud, custom silicon and entertainment reinforce one another. Each claim can be checked against a later quarter. The run rate, the AWS growth targets and the capex savings will each be tested against reported numbers in the coming periods, and that is where they will either hold or be revised.
