Our attention is a precious commodity, and it’s fascinating to see how major web platforms place a price on it : How much is your ad attention worth?
Starting today, Amazon’s Prime Video will inject commercials in TV shows and movies, unless users opt to pay extra ($2.99/month in the U.S.) to have an ad-free experience.
➡ Price for ads free comes on top of Prime subscription
➡ At just €2.99/month for Prime Video without ads, it’s relatively low compared to the competition, as company promises to have “meaningfully fewer ads than linear TV and other streaming TV providers”
➡ However Less than 15% of subscribers are expected to opt for the no-ads tier
=> This shift signifies Amazon’s aggressive entry into the streaming ad market and will leverage its unmatched scale and consumer data.
Morgan Stanley forecasts Prime Video will generate $3.3 billion in ad revenue next year, growing to over $7 billion by 2026.
So, how much do you think your attention is worth?
Platform | Premium (Without ads) subscription per month |
Youtube | 12,99€ |
Spotify | 10,99€ |
9,99€ | |
Netflix | 7,5€ |
Amazon Prime Video | 2,99€ (plus Prime subscription) |
To fully understand the platform no ads business, we need to dig deeper into business metrics of each platform in terms of media and subscription. For Amazon, we need to know :
– how much are they going to earn (by user) from streaming ads
– what % of prime users will subscribe to ad-free video prime
– how many prime users will unsubscribe from the service (due to streaming ads)
Join us to build a benchmark per market
Platform | Premium subscription per month | Average Media CPM | Average frequency rate per user | Estimated ad revenue per user | ROI Subscription vs. ROI ads |
Youtube | 12,99€ | ||||
Spotify | 10,99€ | ||||
9,99€ | |||||
Netflix | 7,5€ | ||||
Amazon Prime Video | 2,99€ (plus Prime subscription) |