Amazon announced a solid third quarter with Amazon Web Services (AWS)-related revenue growth of 12 percent to $23.06 billion; online sales and advertising sales are also good times, the latter registering a 26 percent increase with revenues of $12.06 billion. Both figures are beyond market forecasts.
Amazon is gaining increasing market share in the digital advertising space. Starting in 2024, the company’s Prime Video service will in fact air programs with ad breaks, although it will serve significantly fewer ads than traditional TV networks. Four minutes per hour seems to be the benchmark for the minimum amount of advertising on a streaming platform. Those who wish to keep Amazon Prime Video ad-free can still do so by paying an additional $2.99 per month in the United States on top of their annual subscription to Amazon’s Prime service.
CEO Andy Jassy pointed out that Prime Video is a key component of the Prime subscription, the service that allows Amazon customers to receive purchased products in a restricted delivery time, and is often one of the two main reasons people sign up. He also said Amazon sees Prime Video becoming a “large and profitable business in its own right.”
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