Amazon’s Entertainment Strategy Amazon may not be the top name in Hollywood shows, but its business approach stands out. They’re blending e-commerce with video. Picture a scene: a train rushes through the Italian Alps, dodging bullets, carrying a former Miss World and spies. Shopping isn’t the first thought for viewers. Yet, pausing offers a shopping option. Viewers can buy the heroine’s necklace, dress, but not her explosive perfume.
Understanding “Citadel” Amazon Prime Video’s “Citadel” showcases the blend of e-commerce and entertainment. Viewers can buy show merchandise, enjoy its music on Amazon Music, and explore its details on IMDb. The show targets global audiences with its diverse cast and multilingual spin-offs. Despite its hefty $300 million budget, “Citadel” didn’t top U.S. streaming charts. Critics argue it’s a symbol of Amazon’s high spend-low impact in video. This year, Amazon plans to spend $12 billion on streaming, only behind Netflix. Their Emmy nominations are fewer than Netflix’s, indicating a disparity in success.
Monetizing Video: Amazon’s Approach Amazon is developing a unique streaming monetization model. They plan to integrate their shows with their ad platform. The goal? Turn their streaming app into a marketplace, much like their e-commerce site. Hollywood may critique Amazon’s content, but Amazon might prove them wrong in the end.
Amazon’s Video Evolution In 2006, Amazon introduced Unbox, similar to iTunes. With time, they’ve become a significant entertainment player. Prime Video, their main streaming service, has about 156 million global viewers monthly, rivaling Disney+ and behind only Netflix. Their ad-supported service, Freevee, has 40 million viewers. Twitch, bought in 2014, attracts 35 million daily viewers. Their Fire TV series is second in sales only to Samsung. Their aggressive pricing, like a $99 43-inch Fire TV, aims to pull users. The main goal of Amazon’s video ventures is to add value to its Prime package. But, video also has potential as a revenue source.
Advertising: A Revenue Avenue In a decade, Amazon has shaken the digital ad world, challenging giants like Google and Meta. Their yearly ad revenue is projected at $45 billion. They’ve kept Prime Video mostly ad-free for a premium feel. But with Netflix and Disney+ introducing ads, Amazon is exploring this avenue. They’ve begun testing ads during sports on Prime. Amazon’s ad strategy is unique. They can offer tailored ads thanks to their vast customer data. This will be evident in their upcoming “Thursday Night Football” ads. As more people shift to streaming, ads on internet-connected TVs will become more valuable.
Television’s New Phase Amazon’s strategy also involves promoting other producers’ content. On Prime Video, viewers see content from various providers. Amazon earns when users subscribe or purchase through Prime. Tom Harrington of Enders Analysis compares this to Amazon’s e-commerce approach. Amazon aims to be the “landlord” in video, much like in e-commerce. Big-budget shows like “Citadel” are to attract users. The goal isn’t just viewership but driving users to Prime and influencing their content choices.
Facing the Challenges Being a content provider has challenges. Amazon’s bargaining power in video is less than in e-commerce. Their influence on consumers is also lesser in video. They lead in U.S. e-commerce sales but lag in streaming traffic. Yet, they’re finding ways to profit in a challenging industry. Their main video goals are clear: get viewers to use their devices, buy through their platform, and watch their ads. “Citadel” might not win awards, but it serves its purpose.
