According to the New-York
Post, Amazon plans on offering a streaming-video alternative. Amazon’s current
video offering comes along with a $99-a-year Prime membership. Earlier next
year, the e-commerce giant is expected to launch a new ad-supported streaming
offering.
The launch of this device may
achieve two goals. First, this new offering will seriously compete with
streaming rivals such as Hulu and Netflix. The key element here is that this
ad-supported service will be decoupled from the yearly Prime membership,
therefore being accessible to a much wider set of customers. Also, it is
expected that this service would undercut Netflix’s price of $7.99 per month.
Second, this offering becomes a platform for Amazon to up-sell customers into a
Prime membership. While Amazon doesn’t disclose any numbers, analysts estimate
that there are 50mm global Prime customers and 50% of them use its video
service. The new ad-supported video streaming service would enable Amazon to
get closer to Netflix, who has 35mm domestic subscribers.
If Amazon allows advertisers
into that ecosystem, they are expected to pay big money for prime time on this
TV-like service. A unique benefit of this service is that targeting may
potentially be based on a consumer’s e-commerce purchasing behavior. Also, Amazon
should eventually be able to track whether a purchase was done on its website
based on that specific advertisement. How many other internet giants can claim
that?
http://nypost.com/2014/11/21/amazon-plans-a-streaming-video-alternative/
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