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Amazon Video Ad Push Seen Generating Extra $5 Billion in Revenue (www.bloomberg.com)

submitted 10 months ago by L4s@lemmy.world to c/technology@lemmy.world

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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.

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[–] reddig33@lemmy.world 22 points 10 months ago* (last edited 10 months ago) (3 children)

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

[–] ansiz@lemmy.world 7 points 10 months ago

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.

[–] archomrade@midwest.social 3 points 10 months ago (1 children)

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)

[–] LWD@lemm.ee 0 points 10 months ago

Narrator: "He was defending the decision"

[–] triptrapper@lemmy.world 1 points 10 months ago (1 children)

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?

[–] bitwaba@lemmy.world 5 points 10 months ago

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).