Amazon Spends $75M on ‘Melania’ Doc Despite $7M Opening, Seeks Kuiper Launch Extension
Amazon paid $40 million to acquire “Melania” and spent $35 million on promotion, yet its $7.04 million opening weekend is unlikely to yield theatrical profit. The company asked the FCC for a 24-month extension to deploy roughly 1,600 Kuiper internet satellites by July 2026, citing rocket shortages and manufacturing disruptions.
1. ‘Melania’ Documentary Box Office Performance
Amazon’s January release of “Melania,” a documentary about the First Lady, generated an estimated $7.04 million in its opening weekend, roughly double pre-release projections of $3–5 million. The film ranked third at the box office behind two theatrical thrillers, but given Amazon’s $40 million acquisition fee and an additional $35 million in marketing spend, analysts project the theatrical window will not yield a profit. Amazon MGM distribution head Kevin Wilson described the weekend as “an important first step in what we see as a long-tail lifecycle” before streaming on Prime Video, but veteran industry executives question the economics of such an outsized licensing deal for a documentary.
2. Corporate Streamlining and Cost-Cutting Measures
Throughout January, Amazon implemented its second major round of corporate layoffs in four months, trimming approximately 16,000 roles—primarily in headquarters and mid-level management—as part of CEO Andy Jassy’s pledge to reduce bureaucracy and redirect funds into artificial intelligence infrastructure. Citizens research analysts estimate these workforce reductions will contribute up to $8 billion in annualized savings by late 2026. Concurrently, Amazon has redeployed capital toward AWS hardware expansion and AI pilot programs, while maintaining marketing budgets for theatrical releases and satellite network build-out.
3. Amazon Leo Satellite Deployment Extension Request
Amazon has formally requested a 24-month extension from the Federal Communications Commission to meet its license requirement of deploying 1,600 low Earth orbit satellites by July 2026, citing a global shortage of launch vehicles, spaceport capacity constraints and manufacturing delays. To date, the company has launched over 150 satellites and booked 10 rides on SpaceX rockets plus a dozen on Blue Origin vehicles. If approved, the extension would push the deployment deadline to July 2028, allowing Amazon Leo to scale toward its target constellation size of 3,236 satellites and begin commercial service later this year.
4. Upcoming Q4 Earnings and Investor Expectations
Amazon reports fourth-quarter results next Thursday, with consensus forecasts projecting roughly 13 percent revenue growth to just above $210 billion. Key drivers include AWS expansion—supported by multi-gigawatt data‐center capacity additions and a recently announced deal to provide AI compute for a leading generative-AI developer—and a double-digit acceleration in digital advertising revenues. Wall Street strategists note that while higher capital expenditures for AI infrastructure and continuing marketing investments will pressure near-term margins, disciplined cost controls across corporate functions should help preserve operating profit within consensus estimates.