Amazon reported a record profit of $4.3bn for the fourth quarter ended March 31.
The company posted a 17.4% rise in earnings from its main business, Prime Video, to $4bn, as revenues for the entire business increased 13% to $7.3 billion.
The business grew 11% to a record $76.6bn in the third quarter, the company said in a statement.
Amazon’s profit came from sales of its Prime Video service, which includes video, books, music and movies, as well as online streaming.
The US internet retailer said it was profitable at $2.5bn.
It also posted $9.9bn in profit in the US online video market.
Amazon is seeking to build a profitable online video business and has been trying to do so for more than a decade.
It recently raised an initial round of $10bn, which it plans to spend on expanding its video service and improving the delivery of its video content to customers.
The deal with Netflix will give Amazon a bigger slice of the $9bn-a-year video-on-demand market.
The Amazon Prime Video deal is likely to be the largest ever with a $20bn-plus valuation.
“This is a significant milestone for the company, and it marks a significant improvement in our growth strategy,” Amazon Chief Executive Jeff Bezos said in the statement.
“In 2016, we delivered more than 40% of our video revenue to our customers, and we’re continuing to drive growth by delivering the right content and the right experience.”