Amazon invested heavily to produce its Lord of the Rings show, with over $350 million spent on season one alone, and an estimated additional cost for season two. However, the show’s viewing figures have been underwhelming, with only 37% of US viewers finishing the first season.
The production costs are staggering, with a total budget of $850,000 per minute and a significant portion spent on visual effects that recreate armies of orcs marching through sweeping storybook settings. The second season was shot in the UK and cost an estimated $458 million to produce.
Amazon’s investment is part of its strategy to attract subscribers to Prime Video, with original content serving as a hook to get viewers into the platform. While the show may not be generating significant revenue for Amazon, it is still producing hype that contributes to the overall value of the Prime subscription service.
Industry analysts argue that Amazon’s focus on creating a spectacle rather than generating strong ratings and revenue from its shows makes sense, given the platform’s goal of selling third-party video subscriptions and renting films. As such, while The Rings of Power may not be meeting Amazon’s financial expectations, it remains an important part of the company’s overall strategy to build a successful streaming service.
Source: https://www.forbes.com/sites/carolinereid/2024/11/30/worlds-most-expensive-tv-show-revealed-with-400-million-cost-per-season