AI is set to reshape our media experience, and Amazon Prime Video is in a strong position to lead the change. According to Morgan Stanley, the integration of AI could help the streaming giant reduce production costs by billions, paving the way for even more engaging content.
If you’ve ever felt overwhelmed by rising content costs or wondered how your favourite shows keep getting better, here’s some good news: AI could free up substantial budgets. This shift might enable Amazon to innovate faster, potentially outpacing competitors like Netflix and YouTube in some key areas.
For instance, Morgan Stanley projects that AI will trim scripted original production costs by about 10% in 2025, even as Amazon is expected to spend roughly $24 billion on programming. While most of this investment will continue to support existing content, a growing portion is set to boost live sports—a sector where Amazon is making steady progress.
It might sound like a delicate balancing act. Although AI could deliver up to 30% savings in theory for scripted TV and films, real-world gains are expected to hover around 10% due to the high costs associated with new productions. In the end, the upfront expense of adopting advanced AI tools is likely to be outweighed by the long-term benefits.
Notably, AI isn’t touching the realm of sports rights. This gives companies with minimal exposure to sports, like Amazon, a chance to redirect cost savings into other strategic areas such as marketing and sports rights acquisitions—areas where traditional broadcasters like Fox and NBC might feel the squeeze as they juggle their hefty sports budgets.
Ben Swinburne from Morgan Stanley sums it up well: while there is a cost to leveraging these advanced AI tools, the net effect could be significant savings, optimising spending and bolstering market competitiveness. This means a potentially smoother, more dynamic streaming experience for viewers like you.
Ultimately, as streaming giants adopt smarter technologies, you can expect a more refined, personalised service that’s both innovative and cost-effective.
