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Amazon to start Free Ad Supported Streaming Video next year
Posted on 11/21/14 at 10:23 am
Posted on 11/21/14 at 10:23 am
quote:
The e-commerce giant will roll out a new ad-supported streaming offering early next year that will be separate from its $99-a-year Prime membership, which includes a video service, sources said.
The ad-supported option — part of an overhaul of its media offerings — poses a serious challenge to streaming rivals such as Hulu and Netflix, analysts said.
“If they do an ad-supported service, they will decouple it from Prime and that is a Netflix killer,” Wedbush Securities analyst Michael Pachter said. “It won’t be $99 a year.”
...Although it will be separate from Prime, the ad-supported service is ultimately a bid by Amazon to lure people to eventually pay up for Prime membership, said one ad source familiar with Amazon’s plans.
“The main point is to bring in more users that you can eventually up-sell to Prime, or to get to a broader audience that doesn’t want to pay for Prime, in order to increase their video share,” the source said.
...Rumors have been rampant that Amazon plans to let advertisers into its media ecosystem. Amazon has already experimented with ads in some shows, according to tech site Re/code.
For advertisers, the service could be the Holy Grail in terms of targeting . In theory, Amazon could tell if ads viewed online led to purchases on its retail site.
LINK /
If the goal is to upsell users to Prime, which would fit the standard MO for Amazon, then it'd probably be a limited version of Prime Video. For instance I'd be shocked if HBO didn't have a "you can't give us away for free" clause in their contract for the shows they have on Prime.
This post was edited on 11/21/14 at 10:24 am
3
Posted on 11/21/14 at 11:19 am to TigerinATL
I watch Crackle sometimes and their selection in nowhere near as big as Netflix so I'm guessing this new one would have a fairly limited selection.
Posted on 11/21/14 at 11:38 am to Brosef Stalin
Crackle is strictly Sony based.
Posted on 11/21/14 at 11:49 am to Froman
quote:
Crackle is strictly Sony based.
Only showing a sliver of one catalog of content definitely limits their selection. I would imagine that many of the shows Amazon has are licensed to them for the purpose of letting people catch up to the current season and boost the show like what happened with Breaking Bad and NetFlix. So previous seasons of Vikings and The Americans for instance, 2 shows that advertise back seasons being available on Prime, would seem like ones the networks wouldn't object to Amazon showing in this format. Amazon on the other hand might limit it if the goal is to get people to upgrade to Prime.
Posted on 11/21/14 at 11:51 am to TigerinATL
I wish Amazon would quit dicking around with their streaming service. It blows and they're constantly talking about putting Netflix and Hulu out of business.
Right now the additional content you get for free with Prime is like 3 shows. Wake me when there's an actual library!
Right now the additional content you get for free with Prime is like 3 shows. Wake me when there's an actual library!
Posted on 11/21/14 at 11:54 am to FootballNostradamus
I don't think you are doing prime right if you think you only get a few shows.
Posted on 11/21/14 at 12:21 pm to TigerinATL
I fail to see how that is a netflix killer. Anyone with half a paycheck would rather pay monthly and avoid ads.
Posted on 11/21/14 at 12:35 pm to TigerinATL
quote:
“If they do an ad-supported service, they will decouple it from Prime and that is a Netflix killer,” Wedbush Securities analyst Michael Pachter said. “It won’t be $99 a year.”
Stopped reading at Micheal Pachter. That dude has been so consistently full of shite when it comes to his video game business analysis there is no way I can take anything else he says seriously.
And PS Mike, people DONT WANT COMMERCIALS thus there is zero chance this is a Netflix killer.
This post was edited on 11/21/14 at 12:37 pm
Posted on 11/21/14 at 1:11 pm to Dr RC
quote:
people DONT WANT COMMERCIALS
But they don't want to pay money for stuff either. I think one big flaw with this strategy is that the people it is most likely to appeal to, people so poor that they don't want to pay $8 per month, are probably mobile only for data.
Posted on 11/21/14 at 5:36 pm to Dr RC
Dick holes at Hulu charge you and still have the nerve to put ads in everything
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