Amazon (NASDAQ: AMZN) takes tough measures against advertising prices

Highlights:Amazon has taken strong measures in the streaming video field, lowered advertising fees, and knocked down its biggest rival.

It's no secret that streaming video is becoming an increasingly intense environment. There are multiple platforms that are working hard to acquire viewers, and since the amount of money viewers can put out for entertainment is limited, platforms are forced to be creative or simply aggressive in order to survive. Amazon AMZN -1.15% ▼ recently showed its motivation for success, and the stock price was lowered slightly in Tuesday afternoon trading due to that plan.

It's no surprise that Netflix NFLX -0.77% ▼ is Amazon's biggest rival. And Amazon is trying to beat Netflix by putting effort into advertising fees. According to reports, Amazon is cutting advertising fees and trying to make Prime Video more attractive to advertisers thanks to its overwhelming retail power.

Since Amazon has entered the area where advertisements are provided, competitors have already been forced to cut prices, and the size of Amazon's advertising inventory has basically lowered prices for everyone. The size of Amazon's advertising inventory has basically lowered prices for everyone. There were too many ads to make it particularly expensive, and the platform needed that revenue. Furthermore, Amazon also has revenue sources from other directions, and if it feels like that, it is possible to supply funds to dissemination strategies, and it seems that at least some of it is on that track.

Meanwhile, the streaming platform Twitch, which is one of Amazon's other properties, seems to be the current loser's deal for Amazon. Amazon spent around 1 billion dollars on Twitch in 2014, but it hasn't made much profit yet.

To make matters worse, the number of Twitch users has begun to slump, and eventually everyone who wants to use Twitch will use Twitch. So Amazon will probably start cutting jobs and other expenses in order to actually turn this property into a surplus. Twitch is certainly an attractive platform, but concerns remain about its low reliability as a business venture.