Breaking Down Amazon's $500 Billion Media Empire
Amazon's (NASDAQ: AMZN) media business, which includes Prime Video, Prime Music, Fire TV, and Twitch, could be worth more than Netflix (NASDAQ: NFLX), Spotify (NYSE: SPOT), Roku (NASDAQ: ROKU), and Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube combined. Needham analyst Laura Martin pegs its value at $500 billion -- nearly as valuable as Amazon's cloud computing business.
A key piece to Martin's valuation is "hidden value" unlocked by Amazon's expanding presence in consumers' lives. For example, Amazon's management has long said Prime members that use its Prime Video service are more likely to stay subscribed longer, and Prime members spend more on Amazon's marketplace, on average, than non-members. Another factor is that media valuations carry higher multiples than retail businesses, so revenue attributed to the media businesses has an outsize impact on the overall value of the business.
Here's how it all breaks down in Martin's estimates.
Source Fool.com
