Amazon recruits Disney executive Jeremy Helfand
Amazon has recently announced the recruitment of Disney executive, Jeremy Helfand, to take charge of Prime Video Advertising as they prepare to launch their ad-supported tier on January 29th. Helfand’s extensive experience in the field, with previous stints at Hulu and Disney, involves overseeing the development of advertising technology platforms for well-known brands including Hulu, Disney+, and ESPN. Amazon hopes to capitalize on Helfand’s expertise to improve advertising offerings and create a seamless experience for Prime Video viewers.
Introduction of ad-supported tier to diversify revenue streams
The addition of an ad-supported tier will not only diversify Amazon’s revenue stream but also attract a wider audience, thus enhancing the platform’s overall reach and competitiveness in the rapidly growing streaming market. This new tier signifies a significant shift in Amazon Prime Video’s operational strategy, as they adopt the AVOD (advertising-based video on demand) model instead of the traditional SVOD (subscription video on demand) approach. This change allows viewers to access a variety of content without subscription fees, potentially drawing in a broader range of users.
Benefits for advertisers and viewers
Advertisers are likely to benefit from this AVOD model, as it offers them an efficient way to reach the ever-growing online streaming audience. In addition, the ad-supported tier will become the default subscription plan for all users. When signing up for the streaming service, users will automatically be enrolled in the ad-supported plan, giving them access to a wide variety of content while generating revenue for the platform. However, those who prefer an ad-free experience can still choose from premium subscription options, allowing them to select the plan that best suits their preferences and budget.
Affordable premium option available
Users seeking an ad-free experience can upgrade their subscription by paying an extra $2.99 per month. This affordable premium option not only removes advertisements but also unlocks exclusive features for subscribers. It represents a worthwhile investment for those seeking a seamless and enhanced experience on the platform.
AVOD model reflects industry trend
Amazon’s decision to adopt the AVOD model reflects a broader industry trend towards integrating advertising revenue sources. This shift showcases the growing interest of businesses in leveraging ad-supported services to reach wider audiences and boost profitability. As consumer preferences evolve towards more accessible and budget-friendly entertainment options, the AVOD model serves as a viable strategy for streaming platforms and content providers to meet these changing needs.
Expected outcomes and impact on OTT market
Amazon’s move towards an ad-supported tier is predicted to make the streaming platform more appealing to a diverse audience and capitalize on the burgeoning demand for ad-supported content in the OTT (over-the-top) domain. Consequently, the platform is expected to see a significant increase in user engagement and retention rates. Additionally, this strategic decision will enable Amazon to tap into new markets and revenue streams, ultimately contributing to its overall growth and competitiveness in the OTT landscape.
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First Reported on: adweek.com
FAQs on Amazon’s Prime Video Ad-Supported Tier and Recruitment of Jeremy Helfand
Who is Jeremy Helfand, and what is his role at Amazon?
Jeremy Helfand is a former Disney executive who has been recruited by Amazon to take charge of Prime Video Advertising. His extensive experience includes overseeing the development of advertising technology platforms for well-known brands like Hulu, Disney+, and ESPN. Amazon aims to utilize his expertise to improve advertising offerings and create a seamless experience for Prime Video viewers.
What is the significance of the ad-supported tier on Amazon Prime Video?
The introduction of an ad-supported tier on Amazon Prime Video signifies a significant shift in the platform’s operational strategy, transitioning from the traditional subscription video on demand (SVOD) model to the advertising-based video on demand (AVOD) model. This change will diversify Amazon’s revenue stream, attract a wider audience, enhance the platform’s overall reach, and improve competitiveness in the rapidly growing streaming market.
How does the AVOD model benefit advertisers and viewers?
Advertisers will benefit from the AVOD model as it offers them an efficient way to reach the growing online streaming audience. For viewers, the ad-supported tier will become the default subscription plan, giving them access to a wide variety of content without subscription fees and generating revenue for the platform. However, viewers can still opt for ad-free premium subscriptions according to their preferences and budget.
What is the cost for the ad-free premium option?
The ad-free premium option on Amazon Prime Video costs an additional $2.99 per month. This plan not only removes advertisements but also unlocks exclusive features for subscribers, offering a seamless and enhanced experience for those willing to invest in the platform.
Why is the AVOD model becoming a trend in the streaming industry?
The adoption of the AVOD model reflects a broader industry trend towards integrating advertising revenue sources. As consumer preferences evolve towards more accessible and budget-friendly entertainment options, the AVOD model serves as a viable strategy for streaming platforms and content providers to meet these changing needs and boost their profitability.
What are the expected outcomes and impacts of the ad-supported tier on Amazon and the OTT market?
With the introduction of an ad-supported tier, Amazon Prime Video is expected to become more appealing to a diverse audience and capitalize on the growing demand for ad-supported content in the OTT (over-the-top) domain. The platform is predicted to see increased user engagement and retention rates and expand into new markets and revenue streams, ultimately contributing to its overall growth and competitiveness in the OTT landscape.
