Amazon.com Inc (NASDAQ:AMZN) CEO Andy Jassy on Thursday stated that the company's streaming service, Prime Video, will have "meaningfully fewer ads" than its competitors.
What Happened: During Amazon's second-quarter earnings call, Jassy highlighted that while advertising is a standard part of streaming video, they plan to diverge from this norm.
"While ads have become a norm of streaming video, we aim to have meaningfully fewer ads than linear TV and other streaming TV providers," he said.
The company's ad tech and measurement capabilities allow brands to directly connect their advertising to business outcomes, such as product sales or subscription sign-ups.
This approach, Jassy believes, will enhance the relevance and performance of ads on Prime Video. For customers who prefer an ad-free experience, Amazon offers this option for an additional $2.99 per month.
Amazon CFO, Brian T Olsavsky, also spoke about how advertising remains a significant contributor to profitability in both the North American and international segments.
He also noted the company's plans to expand its offerings in areas driving growth, including sponsored products and Prime Video ads.
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Why It Matters: Amazon's decision to reduce ads on Prime Video comes after the company undercut Netflix Inc. on advertising pricing to attract marketers' attention.
The e-commerce giant introduced advertising to its Prime Video platform five months ago and has been presenting its plans to advertisers to attract money for the next year.
The introduction of an ad-supported version of Prime Video disrupted the streaming ad market, causing a significant decrease in ad prices for everyone, including Netflix, YouTube, and TV networks.
This move impacted the negotiations these platforms are having with advertisers for the upcoming TV season.
Meanwhile, on Thursday, Amazon announced second-quarter net sales of $148 billion, a 10% increase year-over-year, but fell short of the Street consensus estimate of $148.56 billion, according to data from Benzinga Pro.
Price Action: At the time of writing, Amazon shares had fallen 8.15% to $169.06 during the pre-market trading session, after closing at $184.07 on Thursday, down by 1.56%.
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Amazon.com Inc(NASDAQ:AMZN)的首席执行官安迪·贾西周四表示,该公司的流媒体概念Prime Video将拥有“含义较少的广告”比其竞争对手。
发生了什么:在亚马逊的第二季度业绩会上,Jassy强调,虽然广告是流媒体视频的标准组成部分,但他们计划偏离这一规范。
“尽管广告已成为流媒体视频的常规,但我们的目标是比线性电视和其他流媒体电视提供含义较少的广告,”他说。
该公司的广告技术和测量能力使品牌能够直接将广告与业务成果(例如产品销售或订阅注册)联系在一起。
Jassy认为,这种方法将增强Prime Video上广告的相关性和实际效果。对于喜欢无广告体验的客户,亚马逊提供每月额外2.99美元的选项。
而亚马逊的首席财务官布莱恩·托尔萨夫斯基(Brian t Olsavsky)也谈到了广告对北美和国际业务利润能力的重要贡献。
他还指出公司计划在推动增长的领域扩大业务,包括赞助产品和Prime Video广告。
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这很重要:亚马逊决定减少Prime Video上的广告,这是在公司以低于Netflix的广告定价来吸引营销人员的注意之后。
这家电商巨头在五个月前将广告引入了其Prime Video平台,并一直向广告商展示其明年吸引资金的计划。
推出支持广告的Prime Video版本扰乱了流媒体广告市场,导致了所有人(包括Netflix、YouTube和电视网络)广告价格的大幅下降。
此举影响了这些平台与广告商为即将到来的电视季进行的谈判。
同时,在周四,亚马逊宣布第二季度净销售额为1480亿美元,同比增长10%,但根据Benzinga Pro的数据,该数字低于街头共识审查的1485.6亿美元。
价格行动:在撰写本文时,亚马逊股价在美股盘前交易中下跌8.15%至169.06美元,周四收于184.07美元,下跌1.56%。
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图片由Unsplash上的Thibault Penin提供