Jay: Unlock the future of streaming’s Post

Five (5) product lessons from Amazon's Prime Video Advertising Growth In the UK, Amazon has shared data on its ad-supported Prime Video service for the first time. This marks a significant shift for Amazon's streaming service as it continues to expand into advertising. ✅Amazon's innovative approach to Prime Video, combining ad-supported and ad-free options, demonstrates adaptability to customer demands and market trends, promoting flexibility and growth. ✅Amazon's expansion into live sports broadcasting underscores the importance of diversifying product offerings to capture multiple revenue streams and remain competitive in various sectors. ✅Amazon's gradual introduction of ads on Prime Video focuses on maintaining a positive customer experience, balancing monetization efforts with customer satisfaction, and offering value without intrusiveness. ✅Amazon uses a data-driven strategy to enhance advertising efficiency, personalized content, and targeting. It leverages user engagement data to tailor products or services to customer preferences. ✅Amazon's strategic partnerships with major sports organizations like the NBA and UEFA demonstrate the power of collaboration, allowing businesses to expand their reach, build brand credibility, and reach new customer segments. What are your thoughts on this? #productlessons #industrylatestnews #businesssgrowth #amazonprime #Productstrategy #productadvertisement

😱 Ads have a come to Amazon Prime as off today! Here’s 4 things to keep in mind: 🌏 1 Scale: Prime with ads has >100m subs (Netflix 23m, Disney+ <10m) & can make Amazon $3-5B in 2024. That would make Amazon the instant No2 US CTV seller (after Hulu, ahead if YouTube) 🚦 2 Opt-in: With only 30% of users expected to pay ~$2.99/m to go ad-free, Amazon rapidly built inventory. That makes ad buyer retention easier. 💴 3 CPMs: At $30-35 this is below Disney & Co and far cry of Netflix entry at $60. And they reportedly gave bonus media as well. 🤖 4 Tech Tricks: An multi-channel DSP, retail data, predictive segments, 1st party data clean rooms, 3rd measurement partnerships, Sales Attribution, and and and… ➡ TLDR: As Adspend is following audiences from linear to streaming, legacy media companies are now competing with big tech. Content is no longer king. This year, advertising is all about proofing you have the scale and tech to effectively support brands. 🟡🟡🟡🟡🟡🟡🟡🟡🟡🟡🟡🟡🟡 Follow me for some context around media and tech! Or hit me up and let's grab a coffee in London or online... xoxo, Andy

Amazon’s Strategic Play: Analyzing the Potential Acquisition of MX Player Amazon is on the verge of acquiring Times Internet-owned MX Player, marking its second attempt to secure the #videostreamingplatform. This strategic move aims to expand Amazon's content library and user base, particularly in the fast-growing Indian market. Expanding Content Library and User Base Acquiring MX Player allows Amazon to diversify its content offerings, attracting and retaining more subscribers. MX Player's strong user base, especially in India, helps #Amazon strengthen its foothold in a competitive market, enhancing its edge against players like Netflix and Disney+ Hotstar. Strengthening Market Position in India India’s burgeoning video streaming market, with its growing internet user base and demand for digital content, makes #MXPlayer an attractive asset. MX Player’s extensive regional content aligns with Amazon’s strategy to cater to diverse audience preferences. Diversifying Monetization Models MX Player’s freemium model, offering both premium and ad-supported content, diversifies Amazon's revenue streams. The ad-supported segment can tap into India’s increasing digital advertising spend, while regional content attracts a broader demographic. Enhancing User Engagement and Technology MX Player’s high engagement metrics and advanced streaming technology will enhance Amazon’s user experience and satisfaction. Integrating these technologies can improve streaming quality and user interface, giving Amazon a competitive advantage. Strategic Synergies and Ecosystem Integration Integrating MX Player into Amazon’s ecosystem creates strategic synergies. Personalized content recommendations powered by Amazon’s AI can drive higher engagement, while MX Player’s content can be integrated into Amazon’s e-commerce and Alexa services for a seamless user experience. Boosting Local Content Production MX Player’s expertise in local content production supports Amazon’s strategy to produce region-specific content that resonates with local audiences, driving subscriber growth. Conclusion Amazon’s potential acquisition of MX Player is a strategic move to expand its content library, strengthen its market position in India, diversify revenue streams, and leverage advanced technology. This acquisition could reshape the streaming landscape, intensifying competition and driving innovation. As Amazon integrates MX Player, expect enhanced user experiences and a more diverse content offering, solidifying its dominance in the #globalstreamingmarket. #Amazon #MXPlayer #StreamingWars #DigitalTransformation #ContentStrategy #IndiaMarket #VideoStreaming #TechAcquisition #AmazonPrimeVideo #DigitalContent #StreamingIndustry #BusinessStrategy

https://lnkd.in/efAyeWpJ? Amazon has not gotten as much churn as expected from introducing ads to Prime, and plans to increase their ad load. Part of Amazon's model is, probably, that if the targeting is good enough and the cost of production is low enough, there's effectively unlimited demand for ads at the right price. Amazon needs to hit $3/month in ad revenue to achieve topline economic parity with their subscription product, and while there are costs associated with the ads business, many of them are fairly fixed, especially if Amazon scales up low-quality or generative AI-based ads.

Ah… the joys of (economic) leverage. Amazon combines its sports (NFL’s TNF, a new NBA package) with its original and licensed content to boost viewership frequency, which thereby, increases (presumably) the frequency with which we buy items on the platform. Remember, Prime members spend $110/month vs $38/month from non-members, per research from Upgrade Points. With the rather clever launch and inclusion of ads (unless you pay a couple bucks extra, which very few apparently did), Amazon Prime Video doubles down on monetizing that frequency. Not rocket science per say but fractional subscription fees + ad monetization + fractional consumer purchases + per title TVOD + reselling other streaming services =  leverage. That is quite a revenue-driving model. https://lnkd.in/gQGey7uc

Retail giants like #Kroger and #Walmart are taking their membership perks to the next level by adding streaming services. This strategic move could drive membership growth and attract larger audiences to ad-supported platforms. The impact? More targeted, high-value ad opportunities as advertisers tap into these expanded ecosystems. By bundling retail and entertainment, these companies are boosting consumer loyalty and creating a win-win that mirrors Amazon Prime's success. https://lnkd.in/d6ZMrGfA What do you think of this retail-streaming bundle trend? Is it the future of customer engagement? #RetailMedia #AdTech #Streaming #AVOD #Advertising

Of course, they are Prime Video & Amazon Studios customers are moving over to the ad-supported option to no one's surprise. The reason is that Amazon wants this to happen, which is why the default option is to push consumers to the ad version. You need to "opt out" to pay the $3 to avoid ads. When is the last time you made the effort to opt out of anything, just keep clicking "yes" to cookies because it is easier. Remember Bezos saying "when we win a #goldenglobe we sell more shoes". They don't make money on subscription fees, we can be sure of that. The retail business in the US is $5.3T and Amazon has a 5% share (Walmart is 10%), however for the faster-growing e-commerce segment, Amazon's share is roughly 40%. Nice round numbers make for easy post-reading. Retail Media is another area where Amazon excels, the idea that Amazon's platforms can market (show ads) products. Prime Video is one piece of this, so are banner ads, so are sponsored search ads. Retailers are taking this business away from more traditional outlets such as linear television. With this, the consumer purchase funnel shrinks (therefore it is much easier for all parties to see the outcome of the ad) making the ROI much more visible. What advertiser would not want that? Look for Amazon, Walmart, and others to pour it on in the retail media space. Anything with a screen can have an ad, next time you use Uber or any app, soon there will be a 3rd party ad stuffed in there. Content needs to get paid for and that has traditionally been advertising. #retailmedia #retail #advertising #eyeballs #johnwannamaker Media Play News https://lnkd.in/g_6uXtSJ

MX Player’s journey, from being acquired by Times Internet in 2018 for $140 million to becoming India’s top streaming app by 2021, has been transformative. However, it struggled to convert its massive user base into paying subscribers and by 2023, it revenue had dropped by 63% to INR 215 crore, while its ad revenue fell by 17% due to shrinking marketing budgets in the post-pandemic economy. With this acquisition, Amazon aims to dominate both the premium (Prime Video) and free (Amazon MX Player) OTT segments in India. https://lnkd.in/dbiHKD38 #OTT #amazonprime #mxplayer #streamingplatform

I am hearing that there is already A LOT of #ctv inventory in the market and it's only increasing. Unless Madison Avenue starts to move a LOT of digital dollars to CTV, I think CPMs will fall relatively dramatically this year. And while certain brands/services will argue about how upscale or premium their audience is, it's the same audience watching across multiple services/devices, and programmatic buyers are getting increasingly savvy about how to reach this same audience with the lowest bid. This leads me to predict that we are going to see a war on user data this year. It's already being fought with respect to device first-party apps but I would not be surprised if #Roku or #Amazon starts to change the app rules around what user PID 3rd party apps can collect even from their own apps.

Here are the takeaways from Amazon's first upfront, which was all stars on deck for Prime Video: First, Amazon's ad tech, through Amazon Marketing Cloud, is making it so non-endemic brands can advertise on Prime Video and the whole ecosystem, as if they were endemic to Amazon's ecomm site. Second, Amazon has had a very confusing ad proposition, with Prime, Freevee, FireTV, but this upfront simplified things. It's Prime Video and a "one stop destination" for advertisers. Third, Amazon actually has some entertainment coming, like a real network. Nicholas Cage in Spiderman "Noir." Reese Witherspoon "Legally Blonde" prequel "Elle." A buddy, action, comedy with Octavia Spencer and Hannah Waddingham. And "Lord of the Rings" had its first trailer. It didn't look like it would bring back anyone who turned it off in the first season, but it's still good. #upfront #adtech #Amazon #Noir https://lnkd.in/e4vJPMBJ