Amazon will lay off “hundreds” of employees at Prime Video and MGM Studios. It's the latest disaster for Hollywood streamers as consumers continue to cut back on streaming subscriptions hit by the Biden economy.
The layoffs are expected to hit both Prime Video, Amazon's streaming entertainment service, and Amazon MGM Studios, the company's television and film studio, which has announced a number of expensive duds, including: There is. of ring of power The series cost an estimated $1 billion to make.
U.S. employees affected by the cuts will be notified on Wednesday, and most other regions will be notified by the end of the week, Reuters said. report. Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, told employees in a memo Wednesday that the layoffs will affect “hundreds” of employees.
The layoffs come as Prime Video plans to add advertising to services that previously had no ads. The decision to insert commercials into movies and TV shows has been heavily criticized by many consumers who believe it is the latest example of streaming shrinkflation, where people are getting less and less product for the same amount of money. .
As Breitbart News noted, President Joe Biden's economic policies that have sent overall consumer prices soaring to unprecedented levels have made it difficult to pay for basic necessities like food, energy, and rent. More Americans are canceling their streaming services as they struggle.
Additionally, streamers have high consumer attrition rates, with subscribers canceling after just a few months and sometimes rejoining months or years later, adding economic stress to an already unpredictable industry. It is causing instability.
Streaming entertainment has become a gold mine for traditional Hollywood studios trying to catch up with Netflix. Studios spend billions of dollars producing content, but most of it fails to connect with audiences.
Even Netflix is struggling, implementing brutal layoffs in 2022.
Like other major Hollywood streamers, Amazon Prime Video has pursued a left-wing political agenda under Amazon CEO Jeff Bezos.
Prime Video censored the 2020 Republican National Convention, refusing to provide live streaming of the multi-night event. The service livestreamed all four nights of the Democratic National Convention the previous week.
Amazon laid off 9,000 workers across its businesses last year, following a series of layoffs that had earlier eliminated 18,000 jobs.
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