Once upon a time, in order to be successful, movie moguls had to ensure that their new movies turned a profit.

Those days are officially over.

Now movies have been “featurized” –  they are now simply a way to feature or differentiate another, better business – Big Tech.

If Amazon signs up more Prime Memberships because of a movie or Podcast offer, or even if they just reduce customer churn a couple percentage points, then the cost of making that movie of Podcast has been worth it.  Who cares if one movie turns a profit on its own?

The ultimate example of this trend right now is podcasting. People are very fond and have good will towards their favourite podcasts but the industry is so small it has not been effectively monetized.

Spotify recently bought the US’s number one podcast – the Joe Rogan Experience. By making the Podcast available on their platform, Spotify has entered the  content game, just as Netflix did when they produced House of Cards. The effect on both firms stock price was profound – Spotify has seen their stock rise 126% as a result.

Even at $100m, content is still the cheapest way for Big Tech to differentiate its platforms.

Posted in: Infographic of the day