Ads Coming to Amazon Prime in India, New Zealand, and Brazil – Will It Change the Prime Experience?
Amazon is making lots of changes to its business model. Although it started to introduce ads to Prime Video in some countries a while ago, the company has now announced it will introduce ads to Prime users in India, Brazil, and New Zealand. Here is a look at how this could affect the user experience and demand.
The Prime Ad Expansion: What It Means for India, New Zealand, and Brazil
It looks like most viewers out there won’t be given the option to avoid ads unless they are willing to pay more. With any service, users expect fast delivery and engaging content. Although their expectations might sometimes seem unreasonable, Prime appears to believe that gaining an even bigger market share is worth making sacrifices for. As long as the content is engaging, the goal remains the same: to make more money.
Amazon’s ad-supported model, as many people are aware, is already used in countries like the US and UK and has been able to help the company create a strong ad economy. With a global reach that extends worldwide, Amazon has pocketed approximately $1.8 billion in upfront advertising contracts. Therefore, it makes sense that they would seek to adopt a similar model in other countries.
How Ads Will Change the Prime Experience
Ads on Prime Video will bring many changes to the watching culture among subscribers, and users could well find it annoying. It can be particularly frustrating when they place ads at a crucial moment in a program.
However, Amazon may restrict the actual load of ads to tolerable extremes because some users will always feel that commercials in any capacity cheapen the experience of the service.
The impact of this change to the Prime service will be different for different audiences. Although some will appreciate getting more fresh content, others will be annoyed by the ads. However, many people will tolerate them. After all, if you’re watching TV or playing live, you may already be used to seeing ads pop up.
Ads on Other Streaming Platforms
Amazon is not the first to offer an ad tier in its streaming package. Other big players like Netflix have also adopted ad-based models over the last couple of years, while videos on YouTube have always included advertisements.
These companies have gained subscribers who are willing to endure advertisements for a cheaper subscription. For example, Netflix started the rollout of its ad tier pricing in certain countries in a bid to increase its number of viewers while still maintaining some control over costs.
The cost of high-quality original programming has prompted many streaming services to find new sources of revenue so they can keep up with their competitors who offer award-winning series with big budgets.
How Ads Could Benefit Content Creation
Although viewers might disagree, ads are a perfect way for a platform to generate revenue. With more advertising dollars coming in, Amazon will be able to push its production values to new levels, potentially putting them on par with Netflix for example. These investments can help them make a name for themselves in award seasons and cover contracts for live events in popular sports.
For consumers in India, Brazil and many other underdeveloped countries, this could also mean they can develop more shows, movies, and content relevant to the local culture. It could enable Amazon to challenge Netflix in content-dense, growing markets while keeping Prime Video competitively priced for consumers in all countries.
While many people will find the introduction of ads on Amazon Prime Video in India, New Zealand, and Brazil unpleasant, the benefits for the platform are clear, as they’ve already learned by rolling ads out across the UK, US, and Europe.
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