Amazon's total content outlay for 2025, encompassing both video and music, saw a significant 10% increase, reaching an impressive $22.4 billion. This figure was disclosed in the e-commerce giant's 10-K annual filing with the SEC, following the announcement of Amazon's fourth-quarter 2025 results. The substantial spending covers licensing and production costs for content offered through Amazon Prime memberships, specifically Prime Video and Amazon Music, as well as expenses related to digital subscriptions and content that is sold or rented.

According to Amazon’s filing, the company’s produced and licensed video content is primarily monetized as a unified 'film group' across all major geographies where Prime memberships are available. As of December 31, 2025, the total capitalized costs for video and music content, predominantly released material, stood at $21.3 billion, marking a 9% increase from $19.6 billion in the previous year. While content spending represents a major expense for many entertainment companies, for Amazon, it is not the largest; CEO Andy Jassy revealed plans to dramatically increase capital expenditures by 50% to $200 billion in 2026, driven primarily by significant AI investments.

Amazon's extensive content spending includes substantial rights fees, such as an estimated $1 billion per year paid to the NFL for the 'Thursday Night Football' package of games. The fourth season of 'TNF' on Prime Video achieved record viewership, averaging over 15 million viewers and a 16% increase. Beyond American football, Amazon's sports portfolio extends to rights for the NBA, WNBA, and NWSL, along with UEFA Champions League matches in specific European countries.

Prime Video boasts a popular slate of original series, including critically acclaimed titles like “Fallout” (whose Season 2 premiered on December 16), “Tom Clancy’s Jack Ryan,” “Reacher,” “Upload,” and “Bosch.” Additionally, Amazon MGM Studios has produced notable series and movies such as “Red One,” “Road House,” “The Lord of the Rings: The Rings of Power,” “Cross,” and “The Idea of You.” Amazon reported last fall that Prime Video now reaches over 315 million monthly viewers worldwide, a substantial increase from 200 million in mid-2024, and that advertisements on Prime Video are now live in 16 countries globally.

Financially, Amazon's advertising revenue in Q4 2025 totaled $21.32 billion, up 23%, slightly exceeding expectations. Revenue from Amazon’s subscription services also saw a 14% rise to $13.12 billion during the quarter. This includes annual and monthly fees for Amazon Prime memberships, alongside other digital subscription services like video, audiobook, digital music, and e-book content, excluding AWS subscriptions.

Regarding accounting practices for its content library, as of the end of 2025, the weighted average remaining life of Amazon’s capitalized video content was 3.2 years, a slight increase from 3.1 years in 2024 and a decrease from 3.5 years in 2023. The company stated that it continuously reviews usage and viewing patterns to impact the amortization of capitalized video content, reflecting any changes prospectively. Amazon’s licensing agreements for various forms of video programming and music content feature a wide array of provisions, including both fixed and variable payment schedules. When a license fee is determinable and the content is available, Amazon recognizes an asset and a corresponding liability. The liability is reduced upon payment, and the asset is amortized to ‘Cost of sales’ on an accelerated basis, guided by estimated usage or viewing patterns, or on a straight-line basis. For original video content, production costs are capitalized and predominantly amortized to ‘Cost of sales’ using an accelerated method that aligns with estimated viewing patterns.