2y ago

Amazon Video Ad Push Seen Generating Extra $5 Billion in Revenue

www.bloomberg.com

Amazon’s Video Ad Push Expected to Generate an Extra $5 Billion in Revenue

Amazon Video Ad Push Seen Generating Extra $5 Billion in Revenue::Amazon.com Inc.’s push into video advertising will boost annual revenue by as much as $5 billion, according to a Bank of America analysis, mostly generated by new television-style commercials on Prime Video.

19 comments

Do your part and cancel if ya have it
- Yes, no point of complaining about ads if you keep your subscription.
- Harder to do if you use Prime for other things. I've never watched a single Amazon video but I'm trying to source other purchase options locally so I can finally cancel the Prime shipping, which was saving our household money over the years. That said, if we can avoid it in the future we'll stay off Amazon.
- I pay yearly for Amazon Prime, and I still need the other stuff it provides.
  I would cancel just Prime Video if I could… but I can’t.
  
  It doesn't provide anything. They already offer free shipping on orders above $25. If you insist on buying from them, just wait to buy stuff until you need $25 worth, then check out.
Yeah I think I'll stick to piracy thanks.
- Arrrrr!
Because Bezos really needed more money
Amazon bought into the Netflix hype around ads and raising prices. Meanwhile, Netflix has been bleeding subscribers in western markets.
https://www.techradar.com/streaming/netflix/has-netflix-lost-its-chill-binge-and-paramount-plus-subscribers-jump-significantly-in-australia
https://insidethemagic.net/2023/10/subscriber-losses-netflix-disney-nk1/
https://www.msn.com/en-us/money/companies/netflix-loses-over-1-5-million-subscriptions-after-price-raise/ar-AA1kUI5T
- I admit I've not look into any numbers, if they are available, but I bet Amazon has an advantage of Prime customers that don't have it primarily as a video streaming service. Those customers probably wouldn't consider ads a big deal.
- True, but they've maintained healthy profits regardless.
  I'm not defending the decision (I got rid of Netflix a long time ago), but they made it knowing full well that it benefitted their long-term financial outlook.
  Amazon is on the same boat as the other streaming platforms started since 2018: theyve sunk a ton of capital into building the platform to eat into Netflix's market share, but they need to start monetizing soon otherwise their shareholders will get impatient with the liability still on the books.
  TL;DR; all these streamers are tanking the market with their competing services but as long as they can make more per user, they can do it indefinitely (but if 'free' alternatives continue absorbing users, then they'll need to put the cabash on it, or else the entire market will go under)
  
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- That MSN article has some numbers that don't add up.
  The news is that the streaming giant is accountable for over half of the 4.4 million subscriptions lost in Spain alone in recent months...
  The analysis firm asserted that 1.6 million users have left the home of series like Stranger Things overall...
  The online streaming service had reported that it had added nine million new users, bringing its total number of subscribers to 247.15 million, during the most recent fiscal disclosure of data.
  Ignoring the fact that 1.6m isn't "over half" of 4.4m, the last paragraph says that they added 9m new users. Am I reading this wrong?
  
  That's 9m globally compared to the 1.6m/4.4m in Spain. They're still adding new users in emerging market countries. I'd imagine the issue is that their users are falling off in their previously established markets (probably western countries, which I'm guessing make more money per sub too).
That’s good. I was worried about Amazon’s profits. All those employees on food stamps. The company must be so broke!
We killed Apple and kept Amazon. There is no streaming but commercial-free streaming, so it now needs to compete with the higher price tag.
Soon it'll be Amazon or britbox, and it's not gonna survive that tribal council.

19 comments