January 30, 2020
Amazon had a “prime” fourth quarter and fiscal year (ended Dec. 31, 2019) across all its business units, including subscription services. The segment, which includes annual and monthly fees associated with Prime memberships, as well as audiobook, digital video, digital music, e-book, and other non-AWS subscription services, generated more than $5.2 billion in revenue. That was up 32% from services revenue of $3.95 billion during the previous-year period.
On the home entertainment front, Amazon Original series “Hunters” will premiere on Feb. 21. Produced by Academy Award-winner Jordan Peele and starring Academy Award-winner Al Pacino, “Hunters” follows a diverse band of Nazi hunters living in 1977 New York City.
In the quarter, Prime Video debuted several Original series and movies, including The Report, The Aeronauts, “The Kacey Musgraves Christmas Special,” The Expanse, as well as the return of “The Marvelous Mrs. Maisel,” “Tom Clancy’s Jack Ryan,” and the final season of “The Man in the High Castle.”
Amazon Studios received eight Golden Globe Award nominations, with “Fleabag” winning Best Television Series, Musical or Comedy, as well as Best Performance by an Actress in a Television Series, Musical or Comedy, for Phoebe WallerBridge.
Amazon Music topped more than 55 million customers worldwide in the quarter. Collectively, in the U.S., U.K., Germany, and Japan, Amazon Music customers have grown nearly 50% year-over-year; and in newer marketplaces France, Italy, Spain, and Mexico, Amazon Music customers more than doubled in 2019. Additionally, Amazon Music Unlimited subscribers grew more than 50% in 2019. •
On the streaming media device front, Fire TV now has more than 40 million active users worldwide. Amazon announced the new Fire TV Edition at CES 2020, which includes a set of tools, features, and services that make it even easier for developers, operators, device makers, and manufacturers to integrate Fire TV into their products. BMW and Fiat Chrysler Automobiles are among the first automakers to introduce Fire TV in their future vehicles.
Founder/CEO Jeff Bezos lauded the results and company for the fourth quarter and fiscal-year results.
Indeed, Amazon hit it out of the park in the quarter and fiscal year. Net sales increased 21% to $87.4 billion in the quarter, compared with $72.4 billion in fourth quarter 2018. Excluding the $120 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 21% compared with fourth quarter 2018.
Operating income increased to $3.9 billion in the quarter, compared with operating income of $3.8 billion in fourth quarter 2018. Net income increased to $3.3 billion in the quarter, compared with net income of $3 billion in fourth quarter 2018.
For 2019, net sales increased 20% to $280.5 billion, compared with $232.9 billion in 2018. Excluding the $2.6 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 22% compared with 2018.
Operating income increased to $14.5 billion, compared with operating income of $12.4 billion in 2018. Net income increased to $11.6 billion, or $23.01 per diluted share, compared with net income of $10.1 billion, or $20.14 per diluted share, in 2018.
“Prime members watched double the hours of original movies and TV shows on Prime Video this quarter compared to last year, and Amazon Originals received a record 88 nominations and 26 wins at major awards shows,” Bezos said in a statement. “A huge thank you to teams across Amazon for their dedicated work to build, innovate, and deliver for customers this [winter] holiday.”