Amazon has been quietly building out its digital service business since 2015, building out infrastructure that allows it to run digital business software, sell advertising, and run digital marketing campaigns, among other things.
Now, Amazon is starting to use that infrastructure to boost revenue.
In August, Amazon said it was raising $500 million in funding to create a new digital division.
The company’s digital division will work to help Amazon build out its Amazon Video platform, the company’s subscription video service, and its new video app.
That’s all part of a broader strategy to help drive digital revenue growth, according to a release from the company.
In an interview with Reuters, Amazon’s Jeff Bezos said the company was investing in its digital business “as we go.”
Bezos said Amazon Video was built to support Amazon Prime, Amazon Instant Video, and other digital services.
In 2018, Amazon Video’s annual operating income was $3.4 billion, according a report from PricewaterhouseCoopers.
Amazon’s revenue in 2018 was $19.6 billion, a 22 percent year-over-year increase, and a 27 percent increase from the year before.
Amazon said in its August announcement that it plans to spend $1.5 billion in the next five years to create its digital video business.
That includes a new cloud-based platform, called Amazon Video Prime, that will let the company sell its Prime video service.
It will also build a new video-on-demand service called VideoNow that will allow customers to watch videos for free and then buy content from Amazon Prime.
The Amazon video business is expected to be worth about $1 billion in 2019.
Amazon has not disclosed the total value of the new digital business, but a person familiar with the company told Reuters that the company had already spent around $600 million in 2017 on Amazon Video, its most valuable business.
Amazon has also been investing in a new platform, Amazon Go, that allows customers to get access to content from Prime Video and other Amazon services, including video, music, and books.
Amazon Go will be powered by Amazon Video and will allow Prime customers to browse and download content from Netflix, Amazon, Hulu Plus, and Amazon Instant.
It’s also part of Amazon’s plans to build a “video service for everyone,” according to the company, which also plans to launch a new mobile video app for Android and iOS devices in the coming years.
Amazon also announced that it would spend $50 million in 2018 on acquiring software and infrastructure startup Vevo, which has a digital service called Vevi that lets users watch videos on a smartphone or tablet.
The acquisition comes after Vevos had raised $5.5 million in seed funding from several investors, including Andreessen Horowitz, Benchmark Capital, and Sequoia Capital.
Amazon Go will also support the company and other apps like Amazon Video Now, Vevu, Amazon Cloud Drive, and Vevio.