Like Netflix or Disney+, Amazon Prime Video is also aiming to change its subscriptions. Good news on paper, but one that could still be displeasing.
Currently, Amazon Prime Video only offers a subscription. A formula that remains the most competitive SVOD offer on the market from a price point of view. Despite a recent price increase. Some would like to bite off a piece of the pie and have a chat with the giant to offer something different.
A cheaper Prime Video subscription thanks to advertising?
Like its competitors, will Amazon Prime Video succumb to the attractiveness of advertising? According to its own statements, the platform has started discussions on this topic The Wall Street Journal. And has been for several weeks. A demand that would come in part from advertisers “in a hurry” to be able to afford a new showcase.
Some programs are already partially funded by advertising. Sports broadcasts on Prime Video are interspersed with advertising, and there is also product placement. But for now, the company’s plans are vague. How many TV spots are broadcast per film or series and how often? Disney+ requires subscribers to watch four 15- to 30-second commercials per hour.
In this case, would the subscription be cheaper? Yes, but not directly. Prime Video would consider forcing ads on its current subscribers and create a pricier ad-free formula. This would make the first subscription cheaper than the new subscription, but there would be no “real” price drop. This is exactly the option Disney Plus chose. The offer with ads is $7.99 (the old price) and without ads is $10.99.
And Netflix? The Red-N platform actually created a subscription at a cheaper price, but it’s a complete flop. Subscribers are unlikely to want the disadvantages of traditional television for such services, where flexibility is the keyword for user experience. According to the Wall Street Journal, the ad-supported versions of HBO Max and Paramount+ could eventually be accepted by Amazon Prime Video. Discussions also take place at this level.
Heading for richer content?
Unlike Disney+, which is permanently removing movies and series to save money and refocus on safe bets, Amazon Prime Video could make new deals. The Wall Street Journal also heard that Jeff Bezos’ company could afford the NBA broadcasting rights.
Although the company claimed so “There is still a lot to play for in advertising” During a stocktake with shareholders, she declined to comment on the rumor (via axios). Apparently, ad revenue on Prime Video is already expected to grow by 40% (in dollar terms) this year.
Unfortunately, if the formula chosen by Amazon is yet to be determined, the arrival of advertising seems inevitable. A risky decision that could result in a loss of subscribers, but the giant has other arguments. The current subscription is not just a simple SVOD platform. In addition, initially it was primarily a service linked to the Amazon store for free delivery of purchases. However, customers can also consult digital books, listen to music, receive exclusive discounts, but also use the large catalog of Prime Video films and series.
