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Amazon has upended the streaming ad market, and Netflix is paying the price

Livemint

Livemint · 1y ago

Amazon has upended the streaming ad market, and Netflix is paying the price

Netflix is lowering its ad rates and exploring new options like product placement to strengthen its ad business. This move comes as the company faces increasing competition in the streaming ad market, with Amazon recently converting its Prime Video subscribers to an ad-supported version. As a result, Amazon's large ad-supported base is influencing negotiations between Netflix, YouTube, TV networks, and advertisers. Netflix is offering reduced rates to some brands, charging around $29 to $35 for reaching 1,000 viewers, closer to Prime Video's pricing. Netflix is also offering premium ad packages with product integrations and sponsorships of live events linked to its content. However, negotiations are ongoing and pricing may change.

Related News

Can Netflix keep flexing its pricing muscle?

Livemint

Livemint · 9m ago

Can Netflix keep flexing its pricing muscle?

Netflix's third-quarter results showcase its success in the streaming market, with a $2.9 billion operating profit and higher-than-expected revenue and subscriber growth. The stock rose 5%, but some investors are looking for potential price hikes as Netflix currently offers a cheaper ad-supported plan compared to its competitors. However, Netflix has expressed its love for the low price point and increased accessibility of its ad plan, indicating that a major price increase may not be imminent. Nonetheless, with an aim to reach 300 million paid members soon, the streaming giant will face challenges in attracting new viewers.

JioCinema announces new ad-free premium plan for ₹29 a month

Livemint

Livemint · 1y ago

JioCinema announces new ad-free premium plan for ₹29 a month

JioCinema, the video streaming platform of Reliance Industries, has introduced new subscription plans to compete with Netflix, Disney+Hotstar, and Amazon Prime Video in the Indian OTT market. JioCinema Premium offers ad-free content in multiple languages, including original series and movies, for ₹29 per month. They also provide a family plan for ₹89 per month that allows streaming on up to four devices simultaneously. JioCinema will continue to offer some free content through ad-supported plans, including sports content and entertainment programming. The new subscription plans undercut the pricing of competitors like Netflix, Disney+Hotstar, and Amazon Prime Video.

JioCinema crosses 15 million subscribers with new premium plans, says Mukesh Ambani | Mint

Livemint

Livemint · 10m ago

JioCinema crosses 15 million subscribers with new premium plans, says Mukesh Ambani | Mint

JioCinema, the video streaming platform owned by Reliance Industries, has announced that it has crossed 15 million paying subscribers. The platform offers ad-free content in multiple languages, including original series, movies, children's shows, and TV entertainment. It aims to compete with international giants like Netflix, Disney+Hotstar, and Amazon Prime Video, as well as domestic players in the Indian OTT services market. JioCinema also offers a family plan and has witnessed significant growth in viewership, with 62 crore Indians watching the second season of the Indian Premier League on the platform.

All Signs Point to Apple TV+ Getting Ads

Gizmodo

Gizmodo · 1y ago

All Signs Point to Apple TV+ Getting Ads

Apple is reportedly considering introducing an ad-supported tier for its streaming service, Apple TV+. The company recently hired a 14-year ad executive from NBCUniversal to strengthen its video advertising team. While Apple has not officially announced plans for an ad-supported tier, it has already started showing ads for certain offerings and has been bringing in ad executives from various media companies. With other major streaming services like Netflix, Disney+, HBO Max, and Amazon Prime Video introducing ads, it seems likely that Apple will follow suit to boost revenue.

Amazon can’t afford a race to the bottom

Livemint

Livemint · 1y ago

Amazon can’t afford a race to the bottom

Amazon is expanding its advertising business by launching ads on its Prime Video streaming service. With Prime Video estimated to have the second-largest penetration in the US streaming market after Netflix, this move could generate over $2 billion in video ad dollars for Amazon next year. The company is also regaining momentum in other areas, with expected revenue growth of 11% for 2023 and profits reaching a record-high margin of 6%. However, Amazon faces competition from Chinese e-commerce players, TikTok, and the need to balance growth with profit margins.

Amazon will show commercials on Prime Video starting next year

Economic Times

Economic Times · 1y ago

Amazon will show commercials on Prime Video starting next year

Amazon plans to start showing commercials on its streaming platform, Prime Video, starting next year. This move is seen as a way for Amazon to boost its advertising revenue and compete with other streaming platforms like Netflix and Hulu, which already include ads in their content. However, it may also irk some subscribers who have enjoyed ad-free viewing on Prime Video.

Coming to your streamer soon: more ads

Business Insider

Business Insider · 1y ago

Coming to your streamer soon: more ads

The paragraph highlights the increasing trend of ads in streaming services. Despite the initial selling point of ad-free streaming, platforms like Netflix, HBO Max, Disney+, and Hulu are incorporating more ads into their offerings. As streamers strive for revenue and profitability, the number of ad minutes per hour has surged. Though the impact on Netflix and Disney+ is uncertain, the trend indicates that more ads can be expected on streaming platforms in the future.

Netflix’s next act will be slower to catch on

Livemint

Livemint · 12m ago

Netflix’s next act will be slower to catch on

Netflix's ad-supported plans, launched in late 2022, are gaining traction as 45% of new sign-ups choose these cheaper options. However, the ad business is off to a slow start with estimates of under $800 million in ad-supported revenue for the first half of 2022, representing 4% of Netflix's total revenue. The company doesn't expect advertising to be a primary revenue driver in the near future, but is still building capabilities to meet advertiser demands. With Amazon also entering the ad-supported streaming market, Netflix will need to scale up its operations to effectively serve the portion of its massive subscriber base willing to watch ads.

Netflix is different now — and there’s no going back

The Verge

The Verge · 1y ago

Netflix is different now — and there’s no going back

Netflix is adapting and making significant changes to stay ahead in the competitive streaming industry. In response to a dwindling subscriber base, the company launched a cheaper, ad-supported tier that quickly gained popularity. Netflix also cracked down on password sharing and implemented price hikes, leading to increased revenue. The company's focus is now on scaling its advertising business and making its ads plan more attractive. Additionally, Netflix's $5 billion deal with WWE Monday Night Raw provides another revenue stream. These strategic moves showcase Netflix's evolution as it navigates the changing streaming landscape.

Netflix to roll out free ‘Ad-supported’ service in Asia and Europe: Report

Livemint

Livemint · 1y ago

Netflix to roll out free ‘Ad-supported’ service in Asia and Europe: Report

Netflix is planning to launch a free, ad-supported subscription plan in select Asian and European markets. This move is in line with their strategy to expand their user base and compete with regional free TV services. The introduction of a free plan is expected to attract more viewers and increase ad revenue for the streaming giant. Netflix is also working on developing its own advertising technology platform, which is set to launch by the end of 2025. The expansion of the ad-supported tier comes amidst intense competition in the streaming industry.

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