who-owns-imdb

Who Owns IMDb?

Amazon acquired IMDb in the late 1990s. IMDb was one of Amazon’s first acquisitions. It was acquired for $55 million in 1998. Now IMDb is one of the many companies owned by Amazon as it continues its aggressive acquisition strategy over the years. Indeed, some of Amazon’s subsidiaries also comprise Audible, Zappos, Whole Foods, Twitch, and many others.

AspectDescriptionAnalysisExamples
Products and ServicesIMDb (Internet Movie Database) is an online platform that provides a wide range of services related to movies, television shows, and entertainment. The core offerings include a comprehensive database of film and TV content, user-generated ratings and reviews, celebrity information, filmographies, news and updates, and a platform for content creators to showcase their work. IMDb also offers advertising opportunities and an Amazon-owned streaming service called IMDb TV.IMDb’s primary products and services encompass a vast database of film and TV content, ratings and reviews, celebrity profiles, news and updates, and a platform for content creators. IMDb TV serves as a streaming service with ad-supported content. Additionally, IMDb offers advertising opportunities to brands looking to reach its large user base.Comprehensive database of film and TV content, user-generated ratings and reviews, celebrity information, filmographies, news and updates, platform for content creators, IMDb TV streaming service, advertising opportunities.
Revenue StreamsIMDb generates revenue primarily through advertising, including display ads, video ads, and sponsored content on its website and IMDb TV platform. The company also earns income through licensing its database to third-party websites and applications. While IMDb TV is primarily an ad-supported service, it may also generate revenue through ad sales and partnerships.Revenue sources include advertising through display ads, video ads, and sponsored content on the IMDb website and IMDb TV platform. Licensing its database to third-party websites and applications extends the brand’s reach and generates income. IMDb TV, as an ad-supported service, may also earn revenue through ad sales and partnerships.Revenue from advertising (e.g., display ads, video ads, sponsored content), income from licensing the database to third-party websites and applications, revenue from IMDb TV through ad sales and partnerships.
Customer SegmentsIMDb serves a diverse customer base of movie and television enthusiasts, including film industry professionals, casual viewers, critics, and content creators. Users rely on IMDb for information about movies and TV shows, ratings and reviews, celebrity details, and industry news. Content creators use IMDb as a platform to showcase their work and connect with potential collaborators.IMDb’s customer segments encompass movie and television enthusiasts, industry professionals, casual viewers, critics, and content creators. Users seek information about movies and TV shows, rely on ratings and reviews, explore celebrity profiles, and stay updated with industry news. Content creators utilize IMDb as a platform to showcase their work and establish connections in the entertainment industry.Movie and television enthusiasts, industry professionals (e.g., filmmakers, actors), casual viewers, critics, content creators (e.g., filmmakers, actors, writers), users seeking information about movies and TV shows, ratings and reviews, celebrity details, and industry news.
Distribution ChannelsIMDb distributes its services primarily through its website, which serves as a centralized platform for movie and TV-related information, ratings, reviews, and news. IMDb TV, the company’s ad-supported streaming service, is accessible through its website and various streaming devices. Additionally, IMDb’s database is licensed to third-party websites and applications, expanding its reach.Distribution channels encompass the IMDb website, providing users with a centralized platform for movie and TV-related content, ratings, reviews, and news. IMDb TV is accessible through the website and various streaming devices, offering ad-supported streaming content. Licensing the database to third-party websites and applications extends IMDb’s presence to other platforms.Distribution through the IMDb website (e.g., imdb.com), IMDb TV accessible through the website and streaming devices, licensing the database to third-party websites and applications, presence on multiple platforms.
Key PartnershipsIMDb collaborates with advertising partners and brands to offer advertising opportunities on its platform. The company also licenses its database to third-party websites and applications, forming partnerships with those platforms. IMDb may partner with content creators and industry professionals to facilitate their presence on the platform. Additionally, IMDb TV may secure partnerships with content providers for streaming rights.Collaborations with advertising partners and brands enable advertising opportunities on IMDb’s platform, generating revenue. Licensing the database to third-party websites and applications extends IMDb’s reach and revenue potential. Partnerships with content creators and industry professionals enhance their presence on the platform. IMDb TV may secure partnerships with content providers for streaming rights, expanding its content library.Collaborations with advertising partners and brands for advertising opportunities, licensing agreements with third-party websites and applications, partnerships with content creators and industry professionals, partnerships with content providers for IMDb TV streaming rights.
Key ResourcesIMDb’s key resources include its extensive database of film and TV content, user-generated ratings and reviews, celebrity profiles, technology infrastructure for website and streaming service operation, a strong brand identity as a trusted source for entertainment information, marketing and promotional campaigns, and partnerships with advertising agencies. The company values user-generated contributions and credibility.The extensive database of film and TV content forms the core resource, making IMDb a valuable source of information. User-generated ratings and reviews enhance the platform’s credibility. Technology infrastructure supports website and streaming service operations. A strong brand identity fosters recognition and trust among users. Marketing and promotional campaigns promote IMDb’s offerings. Partnerships with advertising agencies enhance revenue generation. User-generated contributions and community engagement are highly valued.Extensive database of film and TV content, user-generated ratings and reviews, celebrity profiles, technology infrastructure for website and streaming service operation, strong brand identity as a trusted source, marketing and promotional campaigns, partnerships with advertising agencies, emphasis on user-generated contributions and credibility.
Cost StructureIMDb incurs costs related to website and streaming service maintenance, technology infrastructure maintenance, content acquisition and licensing, employee salaries and benefits, marketing and promotional campaigns, server and bandwidth expenses for streaming content, and administrative overhead. Investments in user-generated content moderation and database updates are also significant.Costs related to website and streaming service maintenance encompass technology infrastructure upkeep and server and bandwidth expenses for streaming content. Content acquisition and licensing expenses are necessary to provide a diverse range of information. Employee salaries and benefits include staff for content moderation, marketing teams, and administrative roles. Marketing and promotional campaigns support user engagement. Investments in user-generated content moderation and database updates are essential for maintaining credibility.Costs related to website and streaming service maintenance, technology infrastructure maintenance, content acquisition and licensing, employee salaries and benefits (e.g., content moderation, marketing, administrative roles), marketing and promotional campaigns, server and bandwidth expenses for streaming content, administrative overhead, investments in user-generated content moderation and database updates.
Competitive AdvantageIMDb’s competitive advantage lies in its comprehensive database of film and TV content, extensive user-generated ratings and reviews, a strong brand identity as a trusted entertainment source, accessibility through various devices, and partnerships with advertising agencies. The platform’s commitment to user-generated contributions and credibility sets it apart in the industry.A comprehensive database of film and TV content, user-generated ratings and reviews, and a strong brand identity as a trusted entertainment source distinguish IMDb. Accessibility through various devices ensures convenience for users. Partnerships with advertising agencies enhance revenue generation. IMDb’s commitment to user-generated contributions and credibility sets it apart in the industry, fostering a dedicated user community.Comprehensive database of film and TV content, extensive user-generated ratings and reviews, strong brand identity as a trusted entertainment source, accessibility through various devices, partnerships with advertising agencies, commitment to user-generated contributions and credibility.
Value PropositionIMDb offers customers a value proposition centered on access to a vast database of film and TV content, ratings and reviews by the user community, celebrity information, and industry news. Users appreciate IMDb’s credibility as a reliable source for entertainment information. Content creators benefit from a platform to showcase their work. Advertisers value the opportunity to reach a large and engaged audience. IMDb TV provides users with ad-supported streaming content.IMDb’s value proposition revolves around access to a comprehensive film and TV content database, user-generated ratings and reviews, celebrity details, and industry news. Users trust IMDb’s credibility as a reliable source for entertainment information. Content creators gain visibility through the platform. Advertisers find value in reaching a large and engaged audience. IMDb TV offers users ad-supported streaming content, expanding entertainment choices.Access to a vast database of film and TV content, user-generated ratings and reviews, celebrity information, industry news, credibility as a reliable source for entertainment information, platform for content creators, advertising opportunities, IMDb TV streaming service with ad-supported content.

Key Highlights:

  • Acquisition and Early Years: IMDb (Internet Movie Database), a popular online database for movies, TV shows, and celebrities, was acquired by Amazon in the late 1990s. This marked one of Amazon’s earliest acquisitions in its history.
  • Acquisition Price: In 1998, Amazon acquired IMDb for $55 million. This move demonstrated Amazon’s interest in expanding its reach into the entertainment and media industry.
  • IMDb’s Role: As part of Amazon, IMDb continued to provide its users with comprehensive information about movies, TV shows, and celebrities. It became a valuable resource for entertainment enthusiasts worldwide.
  • Amazon’s Acquisition Strategy: The acquisition of IMDb was just one example of Amazon’s aggressive acquisition strategy over the years. The company has acquired numerous other businesses to diversify its portfolio and expand its offerings.
  • Subsidiaries: IMDb joined the ranks of other Amazon-owned subsidiaries like Audible (audiobook platform), Zappos (online shoe and clothing retailer), Whole Foods (grocery chain), Twitch (live streaming platform), and many more.
  • Diverse Portfolio: Amazon’s acquisitions span various industries, demonstrating its commitment to innovation and growth in different sectors of the market.
  • Strategic Expansion: Through acquisitions, Amazon has strategically positioned itself to tap into new markets, enhance its customer offerings, and further solidify its position as a global technology and e-commerce giant.

Connected to Amazon Business Model

Amazon Business Model

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Amazon has a diversified business model. In 2022 Amazon posted over $514 billion in revenues, while it posted a net loss of over $2.7 billion. Online stores contributed almost 43% of Amazon revenues. The remaining was generated by Third-party Seller Services, and Physical Stores. While  Amazon AWS, Subscription Services, and Advertising revenues play a significant role within Amazon as fast-growing segments.

Amazon Revenue By Country

Amazon Revenue By Country
In 2022, most of Amazon’s revenue came from the US, with over $356 billion in revenue, followed by Germany with $33.6 billion, the UK with $30 billion, Japan with $24.4 billion, and the rest of the world generated almost $70 billion in net sales.

Amazon Cost Structure

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Both the North American and International segment of Amazon are running at negative margins. Indeed, in 2022, for the North American segments, of almost $316 billion in revenue, Amazon spent almost $319 billion in operating costs to run it, thus it generated $2 billion in operating losses in 2022. For its International segment, of $118 billion in revenue, Amazon spent almost $126 billion to operate it. Thus, it reported a $7.7 billion operating loss. While for AWS, with $80 billion in revenue, Amazon spent $57 billion to operate it, thus generating almost $23 billion in operating income. The high operating costs are primarily due to the high cost of running Amazon’s inventory and fulfillment infrastructure behind its e-commerce operations. Indeed, Amazon is as much as a physical player as a digital one.

Is Amazon Profitable Without AWS?

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Amazon was not profitable once AWS was removed in 2022. In fact, Amazon, without AWS generated $10.6 billion in operating losses. While Amazon, without AWS, generated $12.2. billion operating income.

Amazon Profit Breakdown

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Amazon is subdivided into three operating profit segments: North America, International, and AWS. Amazon AWS is the most profitable segment, with almost $23 billion in operating profit in 2022. While Both the North American and International segments run at negative operating losses, with $2 billion and $7.74 billion in operating losses, respectively, in 2022.

Amazon Revenue Breakdown

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Amazon Revenue Per Employee

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Amazon vs. Walmart

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eBay vs. Amazon

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In 2021, Amazon generated almost $470 billion in revenue, vs. eBay’s over $10.4 billion. In comparison, looking at revenues, Amazon was 45x times larger than eBay.

Amazon Mission Statement

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Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.” 

Customer Obsession

customer-obsession
In the Amazon Shareholders’ Letter for 2018, Jeff Bezos analyzed the Amazon business model, and it also focused on a few key lessons that Amazon as a company has learned over the years. These lessons are fundamental for any entrepreneur, of small or large organization to understand the pitfalls to avoid to run a successful company!

Amazon Revenues

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Amazon has a business model with many moving parts. The e-commerce platform generated $220 billion in 2022, followed by third-party stores services which generated over $117 billion; Amazon AWS, which generated over $80 billion; Amazon advertising which generated almost $38 billion and Amazon Prime, which generated over $35 billion, and physical stores which generated almost $19 billion.

Amazon Cash Conversion

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Working Backwards

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The Amazon Working Backwards Method is a product development methodology that advocates building a product based on customer needs. The Amazon Working Backwards Method gained traction after notable Amazon employee Ian McAllister shared the company’s product development approach on Quora. McAllister noted that the method seeks “to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.”

Amazon Flywheel

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The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.

Jeff Bezos Day One

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In the letter to shareholders in 2016, Jeff Bezos addressed a topic he had been thinking quite profoundly in the last decades as he led Amazon: Day 1. As Jeff Bezos put it “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.”

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