Offer a paid subscription, offering access to a large catalog of content, but without completely excluding advertising. This is the formula that is taking hold among the streaming giants. Contrary to the initial formula which wanted to differentiate itself from television channels by offering guaranteed packages without advertising, netflix And Disney+ now offer a cheaper subscription – 5.99 euros and 7.99 dollars, respectively – including advertising slots.
Amazon Prime Video could follow suit. According to the “Wall Street Journal” , the e-commerce giant would think about the question with the aim of “developing its advertising activity and generating more revenue”. The discussions are only at the beginning, according to sources interviewed by the American daily, but have been continuing for several weeks. “They come as a result of internal audits aimed at reducing costs in all of the company’s activities, which resulted in thousands of layoffs “, continues the WSJ.
An opportunity that would interest advertisers, looking for access “to higher quality programs, which are often free of advertising and whose content arouses more interest”, details the economic newspaper. Amazon Prime Video broadcasts, among other things, a series inspired by the “Lord of the Rings”, and sports competitions, already accompanied by adver.
Pay more to exclude ads
Several ways to integrate these ads into Amazon Prime Video programs are on the table. One of the options would be to add advertising in the programs for current subscribers, while offering them to pay more to exclude advertising and be entitled to other features. In any case, “the company expects advertising slots to be short,” says the WSJ.
The objective for Netflix and Disney+, whose number of users is beginning to stagnate, was to attract new consumers, with more limited means. For Amazon Prime Video, it’s more about covering costs related to the production of programs and films according to the American daily.
In February, Chief Financial Officer Brian Olsavsky said Amazon had spent about $7 billion on content creation in 2022. Amazon is already very established in the advertising market. In the first quarter of 2023, the e-commerce giant’s advertising revenue reached $9.5 billion.