Amazon's Ad-Driven Strategy for Prime Video Gets Applauded: Analysts Forecast Incremental Revenue
Portfolio Pulse from Anusuya Lahiri
Amazon plans to add limited advertisements to Prime Video in 2024 and introduce an ad-free tier for an additional $2.99/month for U.S. Prime members. Analysts from Wedbush and Telsey Advisory Group have reiterated their 'Outperform' ratings for Amazon, with price targets of $180 and $160 respectively. They forecast incremental revenues from this move and do not expect significant membership churn.
September 25, 2023 | 6:01 pm
News sentiment analysis
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POSITIVE IMPACT
Amazon's new ad-driven strategy for Prime Video is expected to generate incremental revenue and is well-received by analysts. The stock is likely to benefit from this positive outlook.
The introduction of ads to Prime Video and an ad-free tier is expected to generate significant additional revenue for Amazon. This positive outlook from analysts could drive investor interest and boost the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Netflix was mentioned in comparison to Amazon's new ad-supported and ad-free options for Prime Video. No direct impact on Netflix is expected from this news.
Netflix was mentioned as a comparison to Amazon's new strategy for Prime Video. However, the news does not directly impact Netflix or its operations.
CONFIDENCE 90
IMPORTANCE 20
RELEVANCE 20