Amazon Prime Video no longer mocks Netflix and plans to add ads

0
51

Amazon Prime Video is preparing to revolutionize the world of streaming with a new plan that promises to change the rules of the game. Following in the footsteps of Netflix, the popular entertainment platform is planning to introduce ads, with the excuse of giving its subscribers a cheaper option to enjoy its wide catalog of movies and series.

Amazon Prime Video is about to take a bold turn in its business strategy by launching an ad-supported plan, following the lead of competitors like Netflix, Max and Disney+. While this may not surprise many, given that other streaming giants have already dabbled in advertising, it’s a significant step for Amazon.

Currently, Amazon Prime Video subscription plans cost €4.99 per month or €49.90 per year. By offering a cheaper option with ads, they are likely to attract a broader subscriber base and allow them to compete more effectively with other platforms. However, it could also happen that the current subscription starts to introduce ads and that they put a higher price than other plans without them. Either way, it would still be cheaper than Netflix’s ad-supported plan.

Note that in May, Amazon introduced Fire TV Channels, an ad-supported free content offering available on Fire TV devices. So it would not be unusual for them to want to introduce more advertising to increase their profits.

Ads to cover expenses

The introduction of an ad plan would allow Amazon to cover the considerable production costs of its original shows and movies. Chief Executive Andy Jassy’s current focus has increasingly turned to profitability across Amazon’s various businesses. It emerged in February that Amazon had spent an estimated $7 billion last year creating Amazon Original content, programming live sporting events and acquiring third-party licensed content offered alongside Prime.

Previously, founder and former CEO Jeff Bezos focused more on growing the video entertainment service than monetizing it. He even expressed his desire to have a series as successful as HBO’s “Game of Thrones.” A prominent example of Amazon’s investment in high-end content was in 2017, when they acquired the rights to the famous literary saga “Lord of the Rings” for a staggering $250 million.

The resulting series, “The Lord of the Rings: The Rings of Power,” had a first season that fetched $715 million, including the cost of rights. This project became one of the most expensive series in history, although it received mixed reviews from the public and critics.

Therefore, the implementation of ads in Prime Video could be a strategy to balance production costs and increase the profitability of the platform, allowing Amazon to continue investing in quality content and expand its offer as it competes with other streaming services. .

amazon prime ads

What would the advertising look like?

One of the possibilities would be to increase the ad presence for existing Prime subscribers and give them the option to pay more for an ad-free alternative and other additional features. Ad breaks are expected to be brief and not significantly interrupt the viewing experience.

This additional approach is similar to the strategy Amazon recently adopted with its Amazon Music service. By giving Prime members access to more songs at no additional cost, but limiting the option for on-demand playback through a more expensive upgrade, the company seeks to give its users flexible options.

It’s important to note that Amazon has yet to officially confirm their plans and there’s a chance they may decide not to go ahead with introducing an ad-supported tier. The company is carefully evaluating the different scenarios and considering the benefits and implications before making a final decision.

Previous articleReddit case: we easily explain what happened and why there are protests all over the Internet
Next articleWhatsApp for Windows: this is how you use WhatsApp on your PC

LEAVE A REPLY

Please enter your comment!
Please enter your name here