Amazon Tests Prime Member Loyalty With Streaming Ad Push
Advertising has become a monster source of revenue for e-commerce and cloud computing giant Amazon.com (NASDAQ: AMZN). Ads generated nearly $10.7 billion of revenue for Amazon in the second quarter alone, up 22% year over year. Advertising is now a bigger business than subscription services, which includes Prime, and it's twice as big as Amazon's physical store segment, which is primarily Whole Foods.
Amazon sells advertising services to third-party sellers and vendors aiming to boost sales on the company's e-commerce platform. One area that has remained ad-free so far is the company's Prime Video offering. Included as part of the $14.99 per month Prime subscription, Prime Video offers a streaming alternative to , HBO Max, and other popular streaming platforms.
As other streaming platforms embrace advertising, Amazon is following suit. Beginning in early 2024, Prime Video shows and movies will begin including "limited advertisements." Amazon is planning to include fewer ads than other streaming platforms, but going from zero to any number of ads is sure to ruffle some feathers.
Source Fool.com
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