Amazon plans to roll out an ad-supported plan on its Prime Video streaming service. The idea behind the project is to further develop the advertising vertical and generate more revenue with the entertainment vertical, according to sources interviewed by the The Wall Street Journal.
Despite macroeconomic challenges, Amazon’s advertising business has been an area of continued growth. In the first quarter of 2023, the company reported revenue of $9.5 billion, up 21% year over year. With that, the company is behind only Google and Meta, according to data from Insider Intelligence.
Currently, Prime Video is available for R$14.90 per month or R$119 per year in Brazil. However, the inclusion of ads can mean both a drop in the subscription fee – as Netflix has done by offering the foundation with ads – and access to a larger collection for everyone at the cost of seeing advertising – as Amazon has done. offering sports coverage with advertisements.
On the other hand, ad adoption can help Amazon defray the cost of creating its series and movies. In 2022, the company spent about $7 billion on Amazon Originals, live sports programming, and licensed content included in the streaming service.
In particular, advertisers want more access to premium series and movies, as these content tends to attract more attention. However, according to sources, if Amazon continues to launch Prime Video with ads, the commercial breaks will be short.
Although current Amazon CEO Andy Jassy recognizes the value of entertainment and live sports coverage, he has also spent a lot of time reviewing the company’s unprofitable divisions, according to people familiar with the matter, causing a few rounds of layoffs of the great technological mass.
The Prime Video post with ads? Understanding Amazon’s new project for streaming first appeared on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
