Amazon follows Netflix and Disney and aims to advertise on Prime Video
Following moves by rivals Netflix and Disney, Amazon is also considering an ad-supported subscription plan for its Prime Video streaming service. Facts, numbers and insights
Like rivals Netflix and Disney, Amazon may soon launch an ad-supported Prime Video streaming service.
Amazon is also considering a subscription to Prime Video with advertising, at a lower cost. The Wall Street Journal first reported it. Amazon management last week greenlighted a plan to create an ad-supported tier for its Prime Video service, a source confirmed to Axios .
“An ad-supported tier will help the company bolster its advertising business at a time when more dollars are shifting from linear television to streaming. It could also help attract more subscribers to its video service,” comments Axios.
The advertising industry is already an area of continued growth for Amazon: In the first quarter, revenues were $9.5 billion, up 21% from a year earlier. In terms of digital advertising revenue, only Google and Meta do better than Amazon, according to Insider Intelligence data. “The streaming industry has faced a slowdown in new signups as subscribers grappling with high inflation and interest rates reduce spending on entertainment and other discretionary expenses,” Reuters reports. Therefore more and more streaming services are adding ad-supported tiers to their products in an effort to grow revenue and grow subscriber bases.
All the details.
SUBSCRIPTION PLAN WITH ADVERTISING FOR AMAZON RPIME VIDEO
It's unclear when an ad-supported tier will be implemented. But unlike rival Netflix, which just launched its own last year, Amazon already has an established advertising team and advertising video products that can help inform its efforts.
The ads are already on Prime Video, and it's unclear exactly how the experience will be built for a separate layer to differentiate itself from current offerings.
THE MOVES OF THE RIVALS NETFLIX AND DISNEY
Proposing a cheaper subscription with adv is a move already made by the leading video streaming platform Netflix . The latter recently touted the initial success of its advertising tier, revealing that it attracted nearly 5 million monthly active users to its service within the first 200 days of launch.
Like Netflix, Disney also launched an ad-supported version of its streaming platform, Disney+, last year. An ad-supported option will also be added to Disney+ in Europe later this year. “We've only just begun to scratch the surface of what we can do with advertising on Disney+,” CEO Bob Iger explained in the quarterly.
AMAZON'S ADVERTISING BUSINESS IS GROWING
Amazon has the fastest growing advertising business in the world, according to Insider Intelligence. Its ad unit also continues to grow about 23% year over year. Right now, the company primarily sells ads to retailers looking to boost their products in Amazon search results. Amazon is already expected to take nearly 40% of new search ad dollars this year, according to Insider Intelligence.
“Officially placing ads in Prime Video allows Amazon to centralize its audience and be more consistent with the brand,” said Ross Benes, principal analyst at Insider Intelligence.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia-on-demand/amazon-segue-netflix-e-disney-e-punta-alla-pubblicita-su-prime-video/ on Fri, 09 Jun 2023 07:30:47 +0000.