This is interesting, Amazon Prime is getting ads next week. Evidence that even for a product with very loyal customers, advertising is more profitable than subscriptions.

https://www.theverge.com/2024/1/26/24051721/amazon-prime-video-ads-reminder

Reply to this note

Please Login to reply.

Discussion

Bet

The bubble will pop.

🧐🧐🧐 enshittification inserted…

Correcto

Same thing with Netflix. They are cancelling the basic no-ad plan and trying to move everyone over to the ad supported plan which they said makes them more money than even the top paid plan.

Advertisements are like taxes. The more there are the less users you’ll find in your jurisdiction 🤷‍♂️

We’re also seeing a resurgance of piracy for tv and movies. The streamers are complaining about lost revenue, but the reality is that piracy is what happens when you make your content expensive.

The case with Netflix and the increasing of streamers services

Subscription is not a good business model because you cannot track who use more the service paying the same amount of who don’t use and pay

I was thinking it was because they're trying to subsidize Twitch through these measures. Aren't they bleeding money with Twitch?

Twitch has already blocked ad blocks.

Advertisement leads to behavior modification: new consumption (or future consumption brought forward). Subscriptions and v4v are monetization of already-existing consumption.

Great point, so is your theory that Amazon is big enough to capture a large chunk of that new consuption?

It doesn't matter if it captures the new consumption directly or not; it'll capture 100% of the ad-revenue of amazon prime anyway