Amazon Says Prime Video Now Makes Money on Its Own
Amazon says its streaming service, Prime Video, is now profitable in its own right. Chief executive Andy Jassy told analysts on the company's earnings call that the service pays its own way, and he said its revenue run rate, meaning the pace it would reach over a full year at current levels, is in the tens of billions of dollars. Variety
Making a profit does not mean spending has slowed. In a 10-Q, the detailed quarterly report companies file with US regulators, Amazon listed total video and music expense of $5.9 billion for the third quarter, up about 7% on a year earlier. Content spending for the first nine months of 2026 reached $18.8 billion, up about 20% from the same period last year. Content spending covers the money paid for shows, films, sports rights and the people who make them.
Sport is a big part of that bill, and Amazon pointed to strong early numbers. According to Nielsen, the audience measurer, Season 5 of Thursday Night Football on Prime Video averaged 17.7 million viewers over its first six games. That is 16% higher than last year's full-season average. The second season of NBA on Prime drew more than 2 million US viewers for its season-opening doubleheader, more than twice last year's full-season average, also according to Nielsen.
Scripted drama is part of the picture too. Amazon said Season 4 of Reacher drew 66 million viewers worldwide in its first 28 days. The company did not say how it counted those viewers. Carrie, a Prime Video series that premiered on October 7, generated more than 2.1 billion minutes watched through October 22, according to Luminate, a firm that tracks streaming viewing. Minutes watched adds up the total time people spend with a title, so a long series can score higher than a short one with the same audience.
The streaming figures sit inside a company-wide report. Amazon posted third-quarter revenue of $201.9 billion, up 12% on a year earlier, and operating income of $28.1 billion, up 61%. Operating income is what remains after day-to-day costs, and Amazon described its operating margin of 13.9% as a record. Earnings per share, the profit attributed to each share, came in at $1.89, below the $1.96 that analysts had estimated, according to CNBC.
Not every number pointed up. CNBC reported negative free cash flow of $42.4 billion for the quarter. Free cash flow is the cash left after a company pays for the equipment and buildings it needs, so a negative figure means spending went beyond the cash coming in. Amazon also left its 2026 capital spending forecast unchanged.
For viewers, the immediate effect is simple. Prime Video is still spending heavily on sport and drama, and the company says the service now covers its costs. Whether that changes how many shows get made or how many are renewed is not something Amazon has announced.
