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Ever since the top streaming platforms all around the world started gaining subscribers, most of the companies thought of creating their own streaming platforms.
This was accelerated during the global pandemic in 2020, when the world was forced to be in their homes and all the businesses were closed, including the theatres.
People had no choice then other than to watch binge movies or shows on Netflix or Prime Video, the two major players at the time.
In fact, Netflix shares went up during the pandemic, which was not at all anticipated at the time. Well, fast-forward to 2023, and the streaming giant has lost several subscribers since people became busier. They even started charging for password sharing this year, and also introduced a basic plan with ads last year.
What happens when a successful company starts doing something and it works? The competitors follow the same strategy because it works because everything is all about money!
Amazon is reportedly considering launching an ad-supported tier for its Prime Video service in order to capture a larger part of the ad revenue pie. The company has been steering diligently on its ad wheel, earning a stunning $9.5 billion in ad revenue in Q1–2023.
Amazon’s ad business has continued to grow, making it the third-biggest digital ad player in the U.S., after Google and Meta.
Having said that, the online shopping giant is still exploring with different ways to incorporate ads into Prime Video.
One possibility is to give current Prime subscribers more advertisements, with the option to pay more for an ad-free version.
Whether this strategy will work or not, we have to wait and see. One thing is certain: people will tune in when the latest season of their favourite shows, such as The Boys, Tom Clancy’s Jack Ryan, or Reacher, drops.
