Balancing Profitability and Entertainment: Amazon Considers Launching Ad-Supported Prime Video Tier
Portfolio Pulse from Anusuya Lahiri
Amazon is considering launching an ad-supported Prime Video tier to expand its ad business and generate more entertainment revenue. The move could inspire other streaming platforms like Netflix and Disney to follow suit. Amazon is also in talks with Warner Bros. Discovery and Paramount Global to add ad-based tiers of their streaming services through Prime Video Channels.
June 08, 2023 | 11:09 am
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POSITIVE IMPACT
Amazon's potential ad-supported Prime Video tier could boost its ad business and entertainment revenue, while also influencing other streaming platforms to adopt similar models.
The introduction of an ad-supported tier for Prime Video could significantly boost Amazon's ad business, which grew by 21% YoY to $9.5 billion in Q1. This move could also generate more entertainment revenue and inspire other streaming platforms to adopt similar models, further solidifying Amazon's position in the market.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Paramount Global is in talks with Amazon about adding an ad-based tier of its streaming service through Prime Video Channels.
Paramount Global's potential partnership with Amazon to add an ad-based tier of its streaming service through Prime Video Channels could increase its reach and generate additional revenue. This collaboration could be beneficial for both companies.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Warner Bros. Discovery is in talks with Amazon about adding an ad-based tier of its streaming service through Prime Video Channels.
Warner Bros. Discovery's potential partnership with Amazon to add an ad-based tier of its streaming service through Prime Video Channels could increase its reach and generate additional revenue. This collaboration could be beneficial for both companies.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Disney may be influenced by Amazon's potential ad-supported Prime Video tier, potentially leading to the adoption of a similar model.
If Amazon successfully launches an ad-supported Prime Video tier, it could inspire other streaming platforms like Disney to follow suit. However, it is uncertain whether Disney would adopt a similar model, as it has historically focused on an ad-free experience.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Netflix may be influenced by Amazon's potential ad-supported Prime Video tier, potentially leading to the adoption of a similar model.
If Amazon successfully launches an ad-supported Prime Video tier, it could inspire other streaming platforms like Netflix to follow suit. However, it is uncertain whether Netflix would adopt a similar model, as it has historically focused on an ad-free experience.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Amazon's potential ad-supported Prime Video tier could impact Google's digital ad revenue market share.
As Amazon's ad business continues to grow, the introduction of an ad-supported Prime Video tier could further increase its digital ad revenue, potentially impacting Google's market share. However, the extent of the impact on Google remains uncertain.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
Amazon's potential ad-supported Prime Video tier could impact Alphabet's digital ad revenue market share.
As Amazon's ad business continues to grow, the introduction of an ad-supported Prime Video tier could further increase its digital ad revenue, potentially impacting Alphabet's market share. However, the extent of the impact on Alphabet remains uncertain.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
Amazon's potential ad-supported Prime Video tier could impact Meta Platforms' digital ad revenue market share.
As Amazon's ad business continues to grow, the introduction of an ad-supported Prime Video tier could further increase its digital ad revenue, potentially impacting Meta Platforms' market share. However, the extent of the impact on Meta remains uncertain.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 40