Amazon CEO Asks His Hollywood Studio To Explain Its Big Spending

Amazon CEO Andy Jassy is taking a hard look at how much the company's Hollywood studio spends on original TV programming. From a report: In recent weeks, he has asked executives for detailed budget analyses of some of their biggest shows, according to people familiar with the matter, scrutinizing the studio's ballooning costs and mixed track record with audiences. The world's largest online retailer is engaged in a companywide cost-cutting program, with plans to eliminate at least 27,000 jobs. Across Amazon, Jassy has also jettisoned 37 different projects deemed unnecessary. The Hollywood studio, which has spent tens of billions of dollars on original programming over the last decade, is an obvious place to look for savings. Last year, Amazon spent $7 billion on original shows, licensed programs and sports, up from $5 billion the year before. Only Netflix and Disney spend more on streaming. In the past nine months, Amazon has released at least a half-dozen pricey series that failed to deliver huge audiences. Daisy Jones & the Six, The Power, Dead Ringers and The Peripheral all cost more than $100 million to produce but failed to crack Nielsen's list of the 10 most-watched streaming programs in the US. Even The Rings of Power ($400 million-plus), a show that attracted a large audience, failed to hold on to most of its viewers over the course of the season, according to The Hollywood Reporter.

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