Bezos pushes Prime Video overhaul focused on AI

Source: Reuters

Jeff Bezos has identified a new, high-profile platform to help showcase the hundreds of billions of dollars Amazon has bet on artificial intelligence: Prime Video.

The Amazon founder and executive chairman pushed Prime Video head Mike Hopkins to overhaul the streaming service so that AI is front and center, according to four people with direct knowledge of the matter.

The resulting project, known internally as Lighthouse, would shine a light on Amazon’s AI capabilities for the more than 200 million consumers who use Prime Video. Lighthouse is viewed as one critical piece in Amazon’s companywide efforts to elevate the company’s stature in artificial intelligence, as competitors like OpenAI and Anthropic speed ahead, the people said.

Other AI initiatives, such as the multiyear overhaul of its Alexa voice assistant to provide more conversational responses, have had mixed results and the unit is still losing money, people familiar with the matter have previously told Reuters.

Amazon declined to comment.

Origins of the Prime Video Initiative

The Prime Video initiative grew out of an internal presentation the streaming service’s executives made to Bezos last autumn that turned contentious, according to these people.

Bezos was displeased that Hopkins’ plans to update Prime Video failed to sufficiently highlight the service’s capabilities in AI and personalisation, according to the people. Bezos’ response prompted the Prime Video executives to scrap their previous plans and embark on Lighthouse.

The company has committed some $200 billion to capital expenditures this year, related primarily to developing AI, and invested an initial $23 billion in ChatGPT-maker OpenAI and Anthropic combined, with the potential for upwards of another $40 billion.

What Lighthouse Entails

Lighthouse encompasses a broad swath of new features that use AI to:

• Improve film and TV recommendations, in part by learning consumers’ preferences
• Respond to spoken requests

Prime Video is working on redesigning the main home page as part of the project, the other people said.

Potential Design Options

The final redesign has not yet been settled, but one option Prime Video executives discussed includes:

• AI-driven tiles with pre-populated viewing suggestions like "action movies from the 1980s" or "Christmas rom-coms" (three of the people said)
• Another source noted a current version does not include text-heavy tiles

The traditional search function would remain, as well as space at the top of the screen for video highlights promoting new releases or sporting events, such as "Thursday Night Football" — the weekly National Football League game exclusive to Amazon.

Amazon is already testing versions of the redesign with a few users, said one of the people. Prime Video’s plans, the people said, could change due to feedback from early testers, or financial or other concerns.

Industry Implications

Prime Video, like other streaming services, relies on paid placement by studios, as well as software algorithms, to dictate where content is displayed on the home screen, said Michael Goodman, director of entertainment research for Parks Associates. Any change to that, including through greater personalisation, could upend that system, he said.

"The real estate on the home screen is very valuable to studios, so it would be a big change to take away any of that coveted space." — Michael Goodman

Bezos has been personally involved in the Prime Video overhaul, the people said, including receiving occasional updates on the project's progress.