The battle for revenue stream continues.
Tech giant Amazon is requiring all Prime video customers to either watch commercials or pay extra for a subscription.
The streaming service is known for popular series like “The Boys,” and in the fall it will air the reality series “Girls of Oslo” with the influencer known as Sophie Elise.
The additional cost US users have to pay to avoid ads is $2.99 per month. At today’s exchange rate, this is equivalent to 32 Norwegian kroner.
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It is expected to sweep into the billions
The new solution will only be released in the United States early next year, but other countries will get announcements at the end of 2024, he wrote. CNBC.
Many analysts are positive about Amazon’s move. According to Bloomberg, analysts at Evercore ISI expect the move to generate between NOK 50 and NOK 150 billion in additional advertising revenue annually.
Ad revenue is expected to bring in more than $5 billion in the United States, analysts at Citi write, according to Bloomberg. The company can use the money to create content.
Amazon’s move is one of several successive moves from streaming companies recently.
Recently, Netflix has tightened its password sharing procedures. The company has also cut back on cheaper, ad-free subscriptions in an attempt to attract more users to switch to the ad option.
CNBC He writes that Netflix believes this shift is paying off financially for the company.
Streaming services like HBO Max and Disney+ are seeing global growth, which has increased competition in the market.
Netflix has also reduced prices in some countries in the Middle East, Europe, South America and Asia. In some cases, the subscription cost is reduced by half.
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