On January 29, Amazon will introduce ads to all Prime Video viewers, with an option to pay $3 a month to remove them.
This move instantly positions Amazon as a major ad-supported streaming platform, potentially generating billions in ad revenue.
The company’s vast subscriber base and competitive viewership make it a significant player in the streaming landscape. (Trending: First Moon Mission In 50 Years Blasts Off)
This shift has marketers excited and legacy media companies concerned, as it could impact linear TV ad spending.
Amazon’s entry into the ad-supported streaming space complicates matters for legacy media companies, who have invested heavily in streaming video.
“Yes, linear is declining. Not all linear is declining equally,” Disney ad sales chief Rita Ferro said.
“And I do foresee a shift in how we use that — I call it real estate space, if you will — on our broadcast network. What is the right content for the right experience at the right time across all those platforms? And I do foresee that that will drive growth.”
“We’ve had a couple-year head start,” NBCUniversal ad sales chairman Mark Marshall said.
“We’re not trying to retrofit our platform into supporting advertising.”
“I think we’ve built it from within for advertisers, so I think we already have a strategic feel of what it should be.”
The move signifies a shift in the streaming industry, with most competing to build the largest streaming ad business.
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