Amazon Video Ad Push Seen Generating Extra $5 Billion in Revenue::Amazon.com Inc.’s push into video advertising will boost annual revenue by as much as $5 billion, according to a Bank of America analysis, mostly generated by new television-style commercials on Prime Video.
True, but they’ve maintained healthy profits regardless.
I’m not defending the decision (I got rid of Netflix a long time ago), but they made it knowing full well that it benefitted their long-term financial outlook.
Amazon is on the same boat as the other streaming platforms started since 2018: theyve sunk a ton of capital into building the platform to eat into Netflix’s market share, but they need to start monetizing soon otherwise their shareholders will get impatient with the liability still on the books.
TL;DR; all these streamers are tanking the market with their competing services but as long as they can make more per user, they can do it indefinitely (but if ‘free’ alternatives continue absorbing users, then they’ll need to put the cabash on it, or else the entire market will go under)
Narrator: “He was defending the decision”