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Amazon CEO Andy Jassy is reviewing the budget on original TV programming and asking some of the company's most expensive hits to review their budgets. 

It could lead to a path where shows such as The Boys or The Rings of Power see slashed production costs as Amazon looks to rein in spending.   

As part of a cost-cutting initiative, Jessy Jassy scrutinized the spending of Amazon's studio as it faces ballooning costs and mixed audience reviews for its productions. 

Amazon spent $7 billion on original shows, licensed programs and sports last year, making it one of the highest spenders in streaming. That is up from $5 billion the year before.

The world's largest online retailer aims to reduce expenses as it implements a broader cost-cutting program, including job reductions and the elimination of unnecessary projects.




Amazon CEO Andy Jassy is reviewing the budget on original TV programming and asking for an explanation for the Hollywood studio's significant expenditure





Citadel Priyanka Chopra Jonas as Nadia Sinh, Richard Madden as Mason Kane





Morfydd Clark. The Lord of the Rings: The Rings of Power

Amazon's Prime Video service's has previous success with its claim to fame 'The Marvelous Mrs. Maisel,' a 5 season series with solid reviews and won an Emmy in 2018. 

Other notable shows include 'Transparent,' which is Amazon's best-review and most-awarded series — including two Outstanding Actor Emmys for Jeffrey Tambor. But Prime has fallen on hard times since. 

Amazon's cost-cutting initiatives are not limited to the Hollywood studio. 

The company has engaged in a companywide savings program, with plans to eliminate at least 27,000 jobs. 

In addition to reviewing the budgets of popular shows, Jassy also deemed 37 different projects across Amazon as unnecessary and shuttered their operation, according to a Bloomberg report. 

These cost-cutting procedures are part of Jassy's broader strategy to streamline operations and improve the company's profitability. 

As the new CEO, he is focused on ensuring that Amazon remains efficient and capable of navigating the challenges of a rapidly evolving business landscape.

While Amazon remains the dominant force in online shopping, its streaming programming recently has been met with mixed reviews by consumers. Several expensive series, such as Citadel, have not achieved significant viewership.   

The first season of Citadel was supposed to cost around $20 million per episode, according to Bloomberg, but it didn't take long for the budget to surge, due partly to the pandemic. 

For the second season of Citadel, Joe Russo will direct every episode and will receive about $25 million for his work.

Jassy seeks to understand the specific costs of shows and their financial justifications. His aim is to manage costs and improve the company's financial performance. 

The scrutiny comes as Amazon's studio, led by Jen Salke, has sought to shift its strategy and soustružení pursue commercial success.

With approval from Bezos, Salke went on a spending spree that she hoped would shift the studio in a more commercial direction.

According to Bloomberg, she spent almost $50 million on three films in one year at the Sundance Film Festival and signed overall deals with Get Out director Jordan Peele, Atlanta creator Donald Glover and Fleabag creator Phoebe Waller-Bridge, among others. 

Despite support from her backers, Jen Salke's ambitious project, Citadel, has not lived up to expectations. 

The show, conceived as a global series with potential spinoffs, encountered budgetary challenges and creative disagreements.




Jassy,  poses for a photo in 2014. Today he is looking for a way to trim costs at Amazon





Amazon has spent $7 billion on original shows, licensed programs and sports last year, making it one of the highest spenders in streaming





The world's largest online retailer aims to reduce expenses as it implements a broader cost-cutting program, including job cuts and the elimination of unnecessary projects





These cost-cutting procedures are part of Jassy's broader strategy to streamline operations and improve profitability of the company

The Russo brothers, known for their success in directing blockbuster films, were initially involved but clashed with other creators over the show's vision.

This led to extensive reshoots and a significant budget increase of at least $80 million. 

Amazon ultimately supported the Russo brothers' version, contributing to a rising concern over costs and a push for greater financial oversight. 

Despite that, Amazon remains committed to investing in original content and expanding its presence in the entertainment industry.

The main challenge in analyzing Amazon studio's performance is that the company's goals are different than those of most entertainment companies, according to Bloomberg. 

While Amazon executives do measure the number of viewers, the video business exists mainly to attract customers to the company's Prime shipping service. 

The company, for example, will check to see what shows have increased the number of Prime customers or another "highly valued action,' but the metrics to prove this are imprecise, according to the Bloomberg report. 

Amazon has nonetheless continued to increase the video programming budget yearly. That includes new movies and more live sports, such as the NFL, set for the streaming channel.